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 Rates $5.00 per direct labor-hour $ 10.00 per machine-hour $ 30.00 per setup $ 200.00 per order Machine setups Production orders Shipments General factory $ 140.00 per shipment $10.00 per direct labor-hour Cost and activity data have been supplied for the following products: Activity Cost Pool Labor-related Machine-related Direct materials cost per unit Direct labor cost per unit Number of units produced per year Total Expected 378 $.5.50 $ 4.25 2,000 852 $ 20.00 $7.00 200
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 Rates $5.00 per direct labor-hour $ 10.00 per machine-hour $ 30.00 per setup $ 200.00 per order Machine setups Production orders Shipments General factory $ 140.00 per shipment $10.00 per direct labor-hour Cost and activity data have been supplied for the following products: Activity Cost Pool Labor-related Machine-related Direct materials cost per unit Direct labor cost per unit Number of units produced per year Total Expected 378 $.5.50 $ 4.25 2,000 852 $ 20.00 $7.00 200
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter2: Accounting For Materials
Section: Chapter Questions
Problem 17E: Davis Co. uses backflush costing to account for its manufacturing costs. The trigger points are the...
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![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 Rates
$ 5.00 per direct labor-hour
$ 10.00 per machine-hour
Activity Cost Pool
Labor-related
Machine-related
Machine setups
Production orders
Shipments
General factory
$ 30.00 per setup
$ 200.00 per order
$140.00 per shipment
$10.00 per direct labor-hour
Cost and activity data have been supplied for the following products:
378
$ 5.50
$ 4.25
2,000
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
378
278
1,500
2,600
6
A
052
50
30
Required:
Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2
decimal places.)
852
3
852
$ 20.00
$7.00
200](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F88616eef-8ea4-4757-b701-b28470c8d1d6%2Fdeb01a7f-64bd-44f1-8667-ba320607bae1%2Fs42eryr_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 Rates
$ 5.00 per direct labor-hour
$ 10.00 per machine-hour
Activity Cost Pool
Labor-related
Machine-related
Machine setups
Production orders
Shipments
General factory
$ 30.00 per setup
$ 200.00 per order
$140.00 per shipment
$10.00 per direct labor-hour
Cost and activity data have been supplied for the following products:
378
$ 5.50
$ 4.25
2,000
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
378
278
1,500
2,600
6
A
052
50
30
Required:
Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2
decimal places.)
852
3
852
$ 20.00
$7.00
200
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