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 Activity Rates $ 8.00 per direct labor-hour $9.00 per machine-hour $ 50.00 per setup $ 100.00 per order $ 180.00 per shipment $ 9.00 per direct labor-hour Cost and activity data have been supplied for the following products: Direct materials cost per unit J78 $ 4.50 $ 4.75 B52 $ 45.00 4,000 $ 10.00 500 Direct labor cost per unit Number of units produced per year Total Expected Activity J78 B52 Direct labor-hours 900 50 Machine-hours 2,900 20 Machine setups 4 4 Production orders 8 4 Shipments 12 4 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 Labor-related Machine-related Machine setups Production orders Shipments General factory Activity Rates $ 8.00 per direct labor-hour $9.00 per machine-hour $ 50.00 per setup $ 100.00 per order $ 180.00 per shipment $ 9.00 per direct labor-hour Cost and activity data have been supplied for the following products: Direct materials cost per unit J78 $ 4.50 $ 4.75 B52 $ 45.00 4,000 $ 10.00 500 Direct labor cost per unit Number of units produced per year Total Expected Activity J78 B52 Direct labor-hours 900 50 Machine-hours 2,900 20 Machine setups 4 4 Production orders 8 4 Shipments 12 4 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
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 5PA: Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of...
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