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\Larner Corporation is adiversified manufacturer of industrial goods. The company'sactivity-based costing system contains the following six activitycost pools and activity rates:
Activity Cost Pool Activity Rates
Labor-related $ 6.00 per direct labor-hour
Machine-related $ 10.00 per machine-hour
Machine setups $ 50.00 per setup
Productionorders $ 100.00 per order
Shipments $ 120.00 per shipment
General factory $ 10.00 per direct labor-hour

Cost and activity data have been supplied for the followingproducts:

J78 B52
Directmaterials cost per unit $ 4.50 $ 26.00
Direct labor costper unit $ 5.00 $ 6.00
Number of unitsproduced per year 2,000 100
Total Expected Activity
J78 B52
Directlabor-hours 1,400 30
Machine-hours 2,400 30
Machine setups 8 1
Productionorders 8 1
Shipments 6 1

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Nelly Stracke
Nelly StrackeLv2
28 Sep 2019

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