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 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 $7.00 per direct labor-hour $7.00 per machine-hour $30.00 per setup $200.00 per order. $140.00 per shipment $7.00 per direct labor-hour Unit product cost Total Expected Activity J78 378 1,200 2,200 6 5 7 B52 30 50 1 1 1 Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to a decimal places.) B52 378 $5.50 $4.75 4,000 B52 $ 32.00 $9.00 100
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 Machine setups Production orders Shipments General factory 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 $7.00 per direct labor-hour $7.00 per machine-hour $30.00 per setup $200.00 per order. $140.00 per shipment $7.00 per direct labor-hour Unit product cost Total Expected Activity J78 378 1,200 2,200 6 5 7 B52 30 50 1 1 1 Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to a decimal places.) B52 378 $5.50 $4.75 4,000 B52 $ 32.00 $9.00 100
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 3PA: Activity-based and department rate product costing and product cost distortions Black and Blue...
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