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
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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