E-7-4 - Please explain how you arrived at your answers.Thank you!
Exercise 7-4 Second-Stage Allocation [LO4]
Larner Corporation is a diversified manufacturer of industrialgoods. The companyâs activity-based costing system contains thefollowing six activity cost pools and activity rates:
Activity CostPool ActivityRates Supporting directlabor $9 per direct labor-hour Machineprocessing $3 per machine-hour Machine setups $40 per setup Productionorders $150 per order Shipments $120 per shipment Productsustaining $775 per product
Activity data have been supplied forthe following two products:
Total Expected Activity
J78 W52 Directlabor-hours 1,125 40 Machine-hours 2,600 30 Machine setups 11 1 Productionorders 11 1 Shipments 22 1 Productsustaining 1 1
Required: Determine the total overhead cost that would be assigned to eachof the products. (Omit the "$" sign in yourresponse.)
Activity CostPool J78 W52 Supporting directlabor $ $ Machineprocessing Machine setups Productionorders Shipments Productsustaining Total overheadcost $ $
E-7-4 - Please explain how you arrived at your answers.Thank you!
| Exercise 7-4 Second-Stage Allocation [LO4]
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Related questions
| 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: |
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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 | |
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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