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 Labor-related $ 9.00 per direct labor-hour Machine-related $ 5.00 per machine-hour Machine setups $ 30.00 per setup Production orders $ 200.00 per order Shipments $ 160.00 per shipment General factory $ 5.00 per direct labor-hour Cost and activity data have been supplied for the following products: J78 B52 Direct materials cost per unit $ 4.00 $ 39.00 Direct labor cost per unit $ 4.00 $ 6.00 Number of units produced per year 2,000 200 Total Expected Activity J78 B52 Direct labor-hours 1,400 30 Machine-hours 2,900 30 Machine setups 6 3 Production orders 4 3 Shipments 5 3 Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.) J78 B52 UNIT PRODUCT COST
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 Labor-related $ 9.00 per direct labor-hour Machine-related $ 5.00 per machine-hour Machine setups $ 30.00 per setup Production orders $ 200.00 per order Shipments $ 160.00 per shipment General factory $ 5.00 per direct labor-hour Cost and activity data have been supplied for the following products: J78 B52 Direct materials cost per unit $ 4.00 $ 39.00 Direct labor cost per unit $ 4.00 $ 6.00 Number of units produced per year 2,000 200 Total Expected Activity J78 B52 Direct labor-hours 1,400 30 Machine-hours 2,900 30 Machine setups 6 3 Production orders 4 3 Shipments 5 3 Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.) J78 B52 UNIT PRODUCT COST
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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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 | |
|---|---|---|
| Labor-related | $ 9.00 | per direct labor-hour |
| Machine-related | $ 5.00 | per machine-hour |
| Machine setups | $ 30.00 | per setup |
| Production orders | $ 200.00 | per order |
| Shipments | $ 160.00 | per shipment |
| General factory | $ 5.00 | per direct labor-hour |
Cost and activity data have been supplied for the following products:
| J78 | B52 | |
|---|---|---|
| Direct materials cost per unit | $ 4.00 | $ 39.00 |
| Direct labor cost per unit | $ 4.00 | $ 6.00 |
| Number of units produced per year | 2,000 | 200 |
| Total Expected Activity | ||
|---|---|---|
| J78 | B52 | |
| Direct labor-hours | 1,400 | 30 |
| Machine-hours | 2,900 | 30 |
| Machine setups | 6 | 3 |
| Production orders | 4 | 3 |
| Shipments | 5 | 3 |
Required:
Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
| J78 | B52 | |
| UNIT PRODUCT COST |
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