J78 B52 Direct materials cost per unit $6.50 $31.00 Direct labor cost per unit $3.75 $6.00 Number of units produced per year 4,000 100 Total Expected Activity J78 B52 Direct labor-hours 1,000 40 Machine-hours 3,200 30 Machine setups 5 1 Production orders 5 1 Shipments 10 1
J78 B52 Direct materials cost per unit $6.50 $31.00 Direct labor cost per unit $3.75 $6.00 Number of units produced per year 4,000 100 Total Expected Activity J78 B52 Direct labor-hours 1,000 40 Machine-hours 3,200 30 Machine setups 5 1 Production orders 5 1 Shipments 10 1
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:J78
B52
Direct materials cost per unit
$6.50 $31.00
Direct labor cost per unit
$3.75
$6.00
Number of units produced per year 4,000
100
Total Expected Activity
J78
B52
Direct labor-hours
1,000
40
Machine-hours
3,200
30
Machine setups
1
Production orders
1
Shipments
10
1
Required:
Compute the unit product cost of each product listed above.
Transcribed Image Text:EXERCISE 4–3 Compute ABC Product Costs LO4-3 9
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
Activity Rates
$7.00 per direct labor-hour
$3.00 per machine-hour
Labor-related
Machine-related
$40.00 per setup
$160.00 per order
Machine setups
Production orders
$120.00 per shipment
$4.00 per direct labor-hour
Shipments
General factory
Cost and activity data have been supplied for the following products:
Page 171
J78
B52
Direct materials cost per unit
$6.50 $31.0O
Direct labor cost
$3.75
$6.00
r unit
Number of units produced per year 4,000
100
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