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 $ 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: Activity Rates $ 7.00 per direct labor-hour $7.00 per machine-hour 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 Total Expected Activity J78 1,200 2,200 6 5 7 B52 30 50 1 1 1 J78 $ 5.50 $ 4.75 4,000 B52 $ 32.00 $9.00 100 Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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 Rates
$7.00 per direct labor-hour
$ 7.00 per machine-hour
Machine setups
$ 30.00 per setup
Production orders.
$ 200.00 per order.
Shipments
$ 140.00 per shipment
General factory
$ 7.00 per direct labor-hour
Cost and activity data have been supplied for the following products:
Activity Cost Pool
Labor-related
Machine-related
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
J78
1,200
2,200
6
5
7
B52
30
50
1
1
1
Required:
Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2
decimal places.)
B52
J78
$ 5.50
$ 4.75
4,000
B52
$ 32.00
$9.00
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 Rates $7.00 per direct labor-hour $ 7.00 per machine-hour Machine setups $ 30.00 per setup Production orders. $ 200.00 per order. Shipments $ 140.00 per shipment General factory $ 7.00 per direct labor-hour Cost and activity data have been supplied for the following products: Activity Cost Pool Labor-related Machine-related 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 J78 1,200 2,200 6 5 7 B52 30 50 1 1 1 Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.) B52 J78 $ 5.50 $ 4.75 4,000 B52 $ 32.00 $9.00 100
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