FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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
$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
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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 $ 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
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