\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
| \Larner Corporation is adiversified manufacturer of industrial goods. The company'sactivity-based costing system contains the following six activitycost pools and activity rates: |
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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 | |
Related questions
E-7-4 - Please explain how you arrived at your answers.Thank you!
| Exercise 7-4 Second-Stage Allocation [LO4]
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Klumper Corporation is a diversified manufacturer of industrialgoods. The company's activity-based costing system contains thefollowing six activity cost pools and activity rates: |
| Activity Cost Pool | Activity Rates | |
| Supporting direct labor | $7 | per direct labor-hour |
| Machine processing | $3 | per machine-hour |
| Machine setups | $45 | per setup |
| Production orders | $170 | per order |
| Shipments | $115 | per shipment |
| Product sustaining | $850 | per product |
| Activity data have been supplied for the following twoproducts: |
| Total Expected Activity | ||
| K425 | M67 | |
| Number of units produced per year | 1,400 | 180 |
| Direct labor-hours | 1,125 | 50 |
| Machine-hours | 2,600 | 40 |
| Machine setups | 13 | 1 |
| Production orders | 13 | 1 |
| Shipments | 26 | 1 |
| Product sustaining | 1 | 1 |
| Required: |
Determine the total overhead cost that would be assigned to each ofthe products listed in the activity-based costing system.(Omit the "$" sign in your response.) |
| Activity Cost Pool | K425 | M67 |
| Supporting direct labor | $ | $ |
| Machine processing | ||
| Machine setups | ||
| Production orders | ||
| Shipments | ||
| Product sustaining | ||
| Total overhead cost | $ | $ |
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