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 Activity Rates $9.00 per direct labor-hour $5.00 per machine-hour $30.00 per setup $200.00 per order Shipments General factory $160.00 per shipment $5.00 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. J78 $ 4.00 B52 $ 39.00 $ 4.00 2,000 $ 6.00 200 Number of units produced per year. Total Expected Activity J78 B52 Direct labor-hours 1,400 30 Machine-hours 2,900 30 Machine setups 6 3 Production orders 4 3 Shipments 5 3 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

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
Activity Rates
$9.00 per direct labor-hour
$5.00 per machine-hour
$30.00 per setup
$ 200.00 per order
$160.00 per shipment
$5.00 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
J78
B52
Direct labor-hours
1,400
30
Machine-hours
2, 900
30
Machine setups
6
3
4
3
5
3
J78
$ 4.00
B52
$ 39.00
$ 4.00
2,000
$ 6.00
200
Production orders
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 $9.00 per direct labor-hour $5.00 per machine-hour $30.00 per setup $ 200.00 per order $160.00 per shipment $5.00 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 J78 B52 Direct labor-hours 1,400 30 Machine-hours 2, 900 30 Machine setups 6 3 4 3 5 3 J78 $ 4.00 B52 $ 39.00 $ 4.00 2,000 $ 6.00 200 Production orders 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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