Larner Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system containsthe following six activity cost pools and activity rates:Activity RatesActivity Cost PoolLabor-relatedMachine-relatedMachine setupsProduction ordersShipmentsGeneral factoryME$ 5.00 per direct labor-hour$ 4.00 per machine-hour$ 60.00 per setup$ 100.00 per order$ 120.00pershipment$ 4.00 per direct labor-hourCost and activity data have been supplied for the following products:378852Direct materials cost per unitDirect labor cost per unit$ 3.50$ 20.00$ 3.75Number of units produced per year$9.004002,000Direct labor-hoursMachine-hoursMachine setupsProduction ordersChinmanteTotal ExpectedActivity3788521,200402,8002044A774 B52Direct materials cost per unitDirect labor cost per unit$ 20.00$9.00400Number of units produced per year.Total ExpectedActivity3788521,20040Direct labor-hoursMachine-hours2,800207Machine setupsProduction orders:Shipments745Required:Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answersto 2 decimal places.)378852Unit product costTULEE378$ 3.50$ 3.752,000

First we need to calculate Total Activity Cost.

Activity Rates $ 5.00 per direct labor-hour ivity Cost Pool Labor-related Machine-related Machine setups Production orders Shipments General factory $4.00 per machine-hour $ 60.00 per setup $ 100.00 per order $ 120.00 per shipment $ 4.00 per direct labor-hour Cost and activity data have been supplied for the following products: 378 852 Direct materials cost per unit Direct labor cost per unit $ 3.50 $ 20.00 $ 3.75 $ 9.00 Number of units produced per year 2,000 400 Direct labor-hours Machine-hours Machine setups Production orders Chinmante Total Expected Activity 378 852 1,200 40 2,800 20 7 4 7

Activity Rates $ 5.00 per direct labor-hour ivity Cost Pool Labor-related Machine-related Machine setups Production orders Shipments General factory $4.00 per machine-hour $ 60.00 per setup $ 100.00 per order $ 120.00 per shipment $ 4.00 per direct labor-hour Cost and activity data have been supplied for the following products: 378 852 Direct materials cost per unit Direct labor cost per unit $ 3.50 $ 20.00 $ 3.75 $ 9.00 Number of units produced per year 2,000 400 Direct labor-hours Machine-hours Machine setups Production orders Chinmante Total Expected Activity 378 852 1,200 40 2,800 20 7 4 7

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 19E

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Larner Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Labor-related Machine-related Machine setups Production orders. Shipments General factory Activity Rates $ 7.00 per direct labor-hour $ 4.00 per machine-hour $50.00 per setup $ 100.00 per order $ 150.00 per shipment $ 4.00 per direct labor-hour Cost and activity data have been supplied for the following products: Direct materials cost per unit Direct labor cost per unit 378 $ 3.00 $ 3.00 B52 $ 20.00 $ 6.00 2,000 100 Number of units produced per year Total Expected Activity 378 B52 Direct labor-hours. 1,000 20 Machine-hours 2,000 50 Machine setups 6 3 Production orders 5 3 8 3 Shipments Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.) J78 B52 Unit product cost
Slater Corporation is a diversified manufacturer of industrial goods. The company's activity- based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Activity Rates Supporting direct labor ... $6.00 per direct labor-hour $4.00 per machine-hour $50.00 per setup $90.00 per order $14.00 per shipment $840.00 per product Machine processing.... Machine setups.. Production orders Shipments .... Product sustaining.. Activity data have been supplied for the following two products: Total Expected Activity K425 M67 Number of units produced per year Direct labor-hours... 200 2,000 80 500 Machine-hours . 100 1,500 Machine setups.. Production orders 1 4 1 4 Shipments..... Product sustaining 1 10 1 1 Required: Determine the total overhead cost that would be assigned to each of the products listed above in the activity-based costing system.
Larner Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Labor-related Machine-related Machine setups Production orders Shipments General factory Cost and activity data have been supplied for the following products: Activity Rates $ 4.00 per direct labor-hour $7.00 per machine-hour Direct labor-hours Machine-hours Machine setups Production orders Shipments Direct materials cost per unit Direct labor cost per unit Number of units produced per year Unit product cost $80.00 per setup $ 100.00 per order $ 100.00 per shipment $7.00 per direct labor-hour J78 Total Expected Activity 378 1,400 3,900 7 7 8 B52 50 50 1 1 1 Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.) B52 378 $ 2.50 $ 4.00 2,000 B52 $ 21.00 $8.00 100
Larner Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Labor-related Machine-related Machine setups Production orders Shipments General factory Activity Rates $ 7.00 per direct labor-hour $7.00 per nachine-hour $30.00 per setup $ 200.00 per order $140.00 per shipment $7.00 per direct labor-hour Cost and activity data have been supplied for the following products: Direct materials cost per unit Direct labor cost per unit Number of units produced per year Total Expected Activity 378 852 Direct labor-hours 1,200 30 Machine-hours 2,200 50 Machine setups 6 1 Production orders 5 1 7 378 $ 5.50 $ 4.75 4,000 852 $32.00 $ 9.00 100 Shipments Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.) J78 B52 Unit product cost
Larner Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Labor-related Machine-related Machine setups Production orders Shipments General factory Activity Rates $ 8.00 per direct labor-hour $ 7.00 per machine-hour $ 50.00 per setup $ 100.00 per order $ 190.00 per shipment $ 7.00 per direct labor-hour Cost and activity data have been supplied for the following products: Direct materials cost per unit Direct labor cost per unit 378 $ 3.00 $ 4.50 B52 $ 35.00 $ 5.00 1,000 100 Number of units produced per year ces Total Expected Activity 378 B52 Direct labor-hours 1,200 50 Machine-hours 3,000 40 Machine setups 7 4 Production orders 3 4 9 4 Shipments Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.) J78 B52 Unit product cost
Strama, Inc., manufactures and sells two products: Product A6 and Product 15. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity Estimated Expected Activity Activity Overhead Activity Cost Pools Labor-related Production orders Measures Cost $181,138 39,624 173,147 Product A6 Product I5 1,800 Total DLHS 7,200 400 9,000 orders 600 1,000 Order size MHS 4,600 4,700 9,300 $393,909 The activity rate for the Order Size activity cost pool under activity-based costing is closest to: Multiple Cholce $23.74 per MH $100.63 per MH $43.77 per MH 自。 92 F AQI 61 ype here to search DELL