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 $ 10.00 per direct labor-hour Machine - related $ 10.00 per machine - hour Machine setups S 70.00 per setup Production orders $ 100.00 per order Shipments $ 190.00 per shipment General factory S 10.00 per direct labor -hour Cost and activity data have been supplied for the following products: J78 B52 Direct materials cost per unit $ 6.00 $ 41.00 Direct labor cost per unit $ 5.00 $ 9.00 Number of units produced per year 1, 000 100 Total Expected Activity J78 B52 Direct labor - hours 1,300 40 Machine - hours 4,000 30 Machine setups 4 1 Production orders 3 1 Shipments 6 1 Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
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 $ 10.00 per direct labor-hour Machine - related $ 10.00 per machine - hour Machine setups S 70.00 per setup Production orders $ 100.00 per order Shipments $ 190.00 per shipment General factory S 10.00 per direct labor -hour Cost and activity data have been supplied for the following products: J78 B52 Direct materials cost per unit $ 6.00 $ 41.00 Direct labor cost per unit $ 5.00 $ 9.00 Number of units produced per year 1, 000 100 Total Expected Activity J78 B52 Direct labor - hours 1,300 40 Machine - hours 4,000 30 Machine setups 4 1 Production orders 3 1 Shipments 6 1 Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 Activity Rates Labor
- related $ 10.00 per direct labor - hour Machine - related $ 10.00 per machine - hour Machine setups $
70.00 per setup Production orders $ 100.00 per order Shipments $ 190.00 per shipment General factory S
10.00 per direct labor-hour Cost and activity data have been supplied for the following products: J78 B52
Direct materials cost per unit $ 6.00 $ 41.00 Direct labor cost per unit $ 5.00 $ 9.00 Number of units
produced per year 1,000 100 Total Expected Activity J78 B52 Direct labor-hours 1,300 40 Machine - hours
4,000 30 Machine setups 4 1 Production orders 3 1 Shipments 6 1 Required: Compute the unit product cost
of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal
places.)
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