Exercise 4-3 (Algo) Compute ABC Product Costs [LO4-3] 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 $60.00 per setup $ 100.00 per order $180.00 per shipment Shipments 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 $ 10.00 per direct labor-hour $ 10.00 per machine-hour Unit product cost Total Expected Activity J78 J78 1,500 2,000 3 4 5 353 B52 B52 50 OON~~ 30 2 2 Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.) J78 $ 3.00 $5.00 2,000 B52 $ 46.00 $ 5.00 200
Exercise 4-3 (Algo) Compute ABC Product Costs [LO4-3] 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 $60.00 per setup $ 100.00 per order $180.00 per shipment Shipments 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 $ 10.00 per direct labor-hour $ 10.00 per machine-hour Unit product cost Total Expected Activity J78 J78 1,500 2,000 3 4 5 353 B52 B52 50 OON~~ 30 2 2 Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.) J78 $ 3.00 $5.00 2,000 B52 $ 46.00 $ 5.00 200
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Exercise 4-3 (Algo) Compute ABC Product Costs [LO4-3]
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
$60.00 per setup
$ 100.00 per order
$180.00 per shipment
Shipments
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
$ 10.00 per direct labor-hour
$ 10.00 per machine-hour
Unit product cost
Total Expected
Activity
J78
J78
1,500
2,000
3
4
5
353
B52
B52
50
OON~~
30
2
2
Required:
Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2
decimal places.)
J78
$ 3.00
$5.00
2,000
B52
$ 46.00
$ 5.00
200](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Feab819a0-dbd6-434d-af1c-d3b68d59bdd8%2F7ddb4aac-113e-40d2-8574-e085acd3739e%2Fwdp5hh_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 4-3 (Algo) Compute ABC Product Costs [LO4-3]
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
$60.00 per setup
$ 100.00 per order
$180.00 per shipment
Shipments
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
$ 10.00 per direct labor-hour
$ 10.00 per machine-hour
Unit product cost
Total Expected
Activity
J78
J78
1,500
2,000
3
4
5
353
B52
B52
50
OON~~
30
2
2
Required:
Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2
decimal places.)
J78
$ 3.00
$5.00
2,000
B52
$ 46.00
$ 5.00
200
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