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28 Sep 2019
Larner Corporation is adiversified manufacturer of industrial goods. The company'sactivity-based costing system contains the following six activitycost pools and activity rates:
Activity CostPool Activity Rates Labor-related $ 5.00 per direct labor-hour Machine-related $ 6.00 per machine-hour Machine setups $ 40.00 per setup Productionorders $ 100.00 per order Shipments $ 120.00 per shipment General factory $ 6.00 per direct labor-hour
Cost and activity data have beensupplied for the following products:
J78 B52 Directmaterials cost per unit $ 6.00 $ 26.00 Direct labor costper unit $ 5.00 $ 6.00 Number of unitsproduced per year 1,000 100
Total Expected Activity J78 B52 Directlabor-hours 1,300 40 Machine-hours 2,200 30 Machine setups 5 2 Productionorders 7 2 Shipments 6 2
Required: Compute the unit product cost ofeach product listed above. (Round your answers to 2 decimalplaces.)
Larner Corporation is adiversified manufacturer of industrial goods. The company'sactivity-based costing system contains the following six activitycost pools and activity rates: |
Activity CostPool | Activity Rates | ||
Labor-related | $ | 5.00 | per direct labor-hour |
Machine-related | $ | 6.00 | per machine-hour |
Machine setups | $ | 40.00 | per setup |
Productionorders | $ | 100.00 | per order |
Shipments | $ | 120.00 | per shipment |
General factory | $ | 6.00 | per direct labor-hour |
Cost and activity data have beensupplied for the following products: |
J78 | B52 | |||
Directmaterials cost per unit | $ | 6.00 | $ | 26.00 |
Direct labor costper unit | $ | 5.00 | $ | 6.00 |
Number of unitsproduced per year | 1,000 | 100 | ||
Total Expected Activity | |||
J78 | B52 | ||
Directlabor-hours | 1,300 | 40 | |
Machine-hours | 2,200 | 30 | |
Machine setups | 5 | 2 | |
Productionorders | 7 | 2 | |
Shipments | 6 | 2 | |
Required: |
Compute the unit product cost ofeach product listed above. (Round your answers to 2 decimalplaces.) |
Jean KeelingLv2
28 Sep 2019