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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 $ 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 Number of units produced per year Total Expected Activity 378 B52 Direct labor-hours 1,200 50 Machine-hours 3,000 40 378 $ 3.00 $ 4.50 852 $ 35.00 $ 5.00 1,000 100

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 $ 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 Number of units produced per year Total Expected Activity 378 B52 Direct labor-hours 1,200 50 Machine-hours 3,000 40 378 $ 3.00 $ 4.50 852 $ 35.00 $ 5.00 1,000 100

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 $ 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
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 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
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