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 Activity Rates $5.00 per direct labor-hour Machine setups $6.00 per machine-hour $ 40.00 per setup $100.00 per order Production orders Shipments $120.00 per shipment General factory $ 6.00 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 1,300 2,200 5 7 852 B52 40 30 2 2 2 Required: Compute the unit product cost of each product listed above. (Do not round Intermediate calculations. Round your answers to 2 decimal places.) 378 $ 6.00 $ 5.00 1,000 B52 $ 26.00 $6.00 100
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 Activity Rates $5.00 per direct labor-hour Machine setups $6.00 per machine-hour $ 40.00 per setup $100.00 per order Production orders Shipments $120.00 per shipment General factory $ 6.00 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 1,300 2,200 5 7 852 B52 40 30 2 2 2 Required: Compute the unit product cost of each product listed above. (Do not round Intermediate calculations. Round your answers to 2 decimal places.) 378 $ 6.00 $ 5.00 1,000 B52 $ 26.00 $6.00 100
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
7
![Exercise 4-3 (Algo) Compute ABC Product Costs [LO4-3]
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
$ 120.00 per shipment
General factory
$6.00 per direct labor-hour
Cost and activity data have been supplied for the following products:
Direct labor-hours
Activity Rates
$5.00 per direct labor-hour
$6.00 per machine-hour
Direct materials cost per unit
Direct labor cost per unit
Number of units produced per year
Machine-hours
Machine setups
Production orders
Shipments
$ 40.00 per setup
$100.00 per order
Unit product cost
Total Expected
Activity
J78
378
1,300
2,200
5
7
6
B52
48
30
2
2
2
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
$ 6.00
$ 5.00
1,000
B52
$26.00
$6.00
100](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F163ce9fc-9a07-4d81-8f79-dff804ba8f91%2Fb1e3fae4-7276-4e90-a42b-6c88bd9c9b5e%2Ffqt81uru_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 4-3 (Algo) Compute ABC Product Costs [LO4-3]
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
$ 120.00 per shipment
General factory
$6.00 per direct labor-hour
Cost and activity data have been supplied for the following products:
Direct labor-hours
Activity Rates
$5.00 per direct labor-hour
$6.00 per machine-hour
Direct materials cost per unit
Direct labor cost per unit
Number of units produced per year
Machine-hours
Machine setups
Production orders
Shipments
$ 40.00 per setup
$100.00 per order
Unit product cost
Total Expected
Activity
J78
378
1,300
2,200
5
7
6
B52
48
30
2
2
2
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
$ 6.00
$ 5.00
1,000
B52
$26.00
$6.00
100
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