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 $ 8.00 per direct labor-hour Machine-related $ 9.00 per machine-hour Machine setups $ 80.00 per setup Production orders $ 200.00 per order Shipments $ 190.00 per shipment General factory $ 9.00 per direct labor-hour Cost and activity data have been supplied for the following products: J78 B52 Direct materials cost per unit $ 7.50 $ 44.00 Direct labor cost per unit $ 4.50 $ 4.00 Number of units produced per year 1,000 400 Total Expected Activity J78 B52 Direct labor-hours 1,100 30 Machine-hours 2,300 30 Machine setups 5 2 Production orders 4 2 Shipments 12 2 Required: Compute the unit product cost of each product listed above. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. whats the unit production cost for J78 and B52?
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 $ 8.00 per direct labor-hour Machine-related $ 9.00 per machine-hour Machine setups $ 80.00 per setup Production orders $ 200.00 per order Shipments $ 190.00 per shipment General factory $ 9.00 per direct labor-hour Cost and activity data have been supplied for the following products: J78 B52 Direct materials cost per unit $ 7.50 $ 44.00 Direct labor cost per unit $ 4.50 $ 4.00 Number of units produced per year 1,000 400 Total Expected Activity J78 B52 Direct labor-hours 1,100 30 Machine-hours 2,300 30 Machine setups 5 2 Production orders 4 2 Shipments 12 2 Required: Compute the unit product cost of each product listed above. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. whats the unit production cost for J78 and B52?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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 Activity Rates
Labor-related $ 8.00 per direct labor-hour
Machine-related $ 9.00 per machine-hour
Machine setups $ 80.00 per setup
Production orders $ 200.00 per order
Shipments $ 190.00 per shipment
General factory $ 9.00 per direct labor-hour
Cost and activity data have been supplied for the following products:
J78 B52
Direct materials cost per unit $ 7.50 $ 44.00
Direct labor cost per unit $ 4.50 $ 4.00
Number of units produced per year 1,000 400
Total Expected Activity
J78 B52
Direct labor-hours 1,100 30
Machine-hours 2,300 30
Machine setups 5 2
Production orders 4 2
Shipments 12 2
Required:
Compute the unit product cost of each product listed above.
Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
whats the unit production cost for J78 and B52?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Recommended textbooks for you
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.