Larner Corporation is a diversified manufacturer of industrial goods. I he 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 $ 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 following products: Direct materials cost per unit Direct labor cost per unit Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Activity Rates $ 6.00 per direct labor-hour $ 10.00 per machine-hour $50.00 per setup Unit product cost J78 Total Expected. Activity 378 1,400 2,400 8 8 6 B52 30 30 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 $ 4.50 $5.00 2,000 B52 $26.00 $6.00 100
Larner Corporation is a diversified manufacturer of industrial goods. I he 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 $ 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 following products: Direct materials cost per unit Direct labor cost per unit Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Activity Rates $ 6.00 per direct labor-hour $ 10.00 per machine-hour $50.00 per setup Unit product cost J78 Total Expected. Activity 378 1,400 2,400 8 8 6 B52 30 30 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 $ 4.50 $5.00 2,000 B52 $26.00 $6.00 100
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 12E: Activity cost pools, activity rates, and product costs using activity-based costing Caldwell Home...
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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
$ 120.00 per shipment
$ 10.00 per direct labor-hour
Cost and activity data have been supplied for the following products:
Direct labor-hours
Machine-hours
Machine setups
Production orders
Shipments
Activity Rates
$ 6.00 per direct labor-hour
$ 10.00 per machine-hour
Direct materials cost per unit
Direct labor cost per unit
Number of units produced per year
$50.00 per setup
$ 100.00 per order
Unit product cost
J78
Total Expected
Activity
378
1,400
2,400
8
98
6
B52
30
30
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
J78
$ 4.50
$ 5.00
2,000
B52
$26.00
$6.00
100](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5bd61b50-5c88-4580-bd29-b4b6e84ce760%2F8da6cf95-2081-44ff-b8ea-4d09fb5b07e2%2Fnbyrbro_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
$ 120.00 per shipment
$ 10.00 per direct labor-hour
Cost and activity data have been supplied for the following products:
Direct labor-hours
Machine-hours
Machine setups
Production orders
Shipments
Activity Rates
$ 6.00 per direct labor-hour
$ 10.00 per machine-hour
Direct materials cost per unit
Direct labor cost per unit
Number of units produced per year
$50.00 per setup
$ 100.00 per order
Unit product cost
J78
Total Expected
Activity
378
1,400
2,400
8
98
6
B52
30
30
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
J78
$ 4.50
$ 5.00
2,000
B52
$26.00
$6.00
100
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