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 Rates $ 8.00 per direct labor-hour Activity Cost Pool Labor-related Machine-related Machine setups Production orders Shipments $7.00 per machine-hour $50.00 per setup $ 100.00 per order $190.00 per shipment General factory $ 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 Direct labor-hours Machine-hours Machine setups Production orders Shipments Unit product cost Total Expected Activity J78 378 1,200 3,000 7 3 mo 9 B52 50 40 B52 +++ 4 Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to decimal places.) 378 $ 3.00 $ 4.50 1,000 B52 $ 35.00 $ 5.00 100

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
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
$190.00 per shipment
General factory
$7.00 per direct labor-hour
Cost and activity data have been supplied for the following products:
Activity Rates
$ 8.00 per direct labor-hour
$7.00 per machine-hour
$50.00 per setup
$100.00 per order
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
Unit product cost
Total Expected
Activity
J78
378
1,200
3,000
7
3
9
B52
50
40
B52
+++
Required:
Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2
decimal places.)
378
$ 3.00
$4.50
1,000
B52
$ 35.00
$5.00
100
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 $190.00 per shipment General factory $7.00 per direct labor-hour Cost and activity data have been supplied for the following products: Activity Rates $ 8.00 per direct labor-hour $7.00 per machine-hour $50.00 per setup $100.00 per order 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 Unit product cost Total Expected Activity J78 378 1,200 3,000 7 3 9 B52 50 40 B52 +++ Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 378 $ 3.00 $4.50 1,000 B52 $ 35.00 $5.00 100
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 1 images

Blurred answer
Knowledge Booster
Cost classification
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education