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 190.00 per shipment General factory $ 8.00 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 Activity Rates $ 4.00 per direct labor-hour $ 8.00 per machine-hour $ 40.00 per setup $ 200.00 per order $ Unit product cost Total Expected Activity $ J78 1,300 2,600 7 8 12 B52 50 40 4 4 4 J78 $ 5.00 $ 4.25 1,000 Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Answer is complete but not entirely correct. J78 B52 34.85 $ 242.24 B52 $ 46.00 $ 5.00 200
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 Cost Pool Labor-related. Machine-related Machine setups Production orders Shipments 190.00 per shipment General factory $ 8.00 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 Activity Rates $ 4.00 per direct labor-hour $ 8.00 per machine-hour $ 40.00 per setup $ 200.00 per order $ Unit product cost Total Expected Activity $ J78 1,300 2,600 7 8 12 B52 50 40 4 4 4 J78 $ 5.00 $ 4.25 1,000 Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Answer is complete but not entirely correct. J78 B52 34.85 $ 242.24 B52 $ 46.00 $ 5.00 200
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 11E: Lonsdale Inc. manufactures entry and dining room lighting fixtures. Five activities are used in...
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