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 $80.00 per setup Production orders $ 100.00 per order Shipments $100.00 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 Activity Rates $4.00 per direct labor-hour. $7.00 per machine-hour Machine-hours Machine setups Production orders Shipments Unit product cost Total Expected Activity J78 378 1,400 3,900 7 7 8 B52 50 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 378 $ 2.50 $ 4.00 2,000 B52 $ 21.00 $ 8.00 100 4
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 $80.00 per setup Production orders $ 100.00 per order Shipments $100.00 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 Activity Rates $4.00 per direct labor-hour. $7.00 per machine-hour Machine-hours Machine setups Production orders Shipments Unit product cost Total Expected Activity J78 378 1,400 3,900 7 7 8 B52 50 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 378 $ 2.50 $ 4.00 2,000 B52 $ 21.00 $ 8.00 100 4
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
General factory
Cost and activity data have been supplied for the following products:
Activity Rates
$ 4.00 per direct labor-hour
$7.00 per machine-hour
Direct labor-hours
Machine-hours
Machine setups
Production orders
Shipments
Direct materials cost per unit
Direct labor cost per unit
Number of units produced per year
Unit product cost
$80.00 per setup
$ 100.00 per order
$ 100.00 per shipment
$7.00 per direct labor-hour
J78
Total Expected
Activity
378
1,400
3,900
7
7
8
B52
50
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
378
$ 2.50
$ 4.00
2,000
B52
$ 21.00
$8.00
100](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa594906b-afea-484b-8e28-12d370e40980%2F821227cd-b9ff-4180-a6e0-3b9b94f63855%2Fupcvdfq_processed.jpeg&w=3840&q=75)
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
General factory
Cost and activity data have been supplied for the following products:
Activity Rates
$ 4.00 per direct labor-hour
$7.00 per machine-hour
Direct labor-hours
Machine-hours
Machine setups
Production orders
Shipments
Direct materials cost per unit
Direct labor cost per unit
Number of units produced per year
Unit product cost
$80.00 per setup
$ 100.00 per order
$ 100.00 per shipment
$7.00 per direct labor-hour
J78
Total Expected
Activity
378
1,400
3,900
7
7
8
B52
50
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
378
$ 2.50
$ 4.00
2,000
B52
$ 21.00
$8.00
100
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