Mathematics, 18.03.2021 04:10 jkw1222p0ttvq
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 $ 7.00 per direct labor-hour
Machine-related $ 7.00 per machine-hour
Machine setups $ 30.00 per setup
Production orders $ 200.00 per order
Shipments $ 140.00 per shipment
General factory $ 7.00 per direct labor-hour
Cost and activity data have been supplied for the following products:
J78 B52
Direct materials cost per unit $ 5.50 $ 32.00
Direct labor cost per unit $ 4.75 $ 9.00
Number of units produced per year 4,000 100
Total Expected
Activity
J78 B52
Direct labor-hours 1,200 30
Machine-hours 2,200 50
Machine setups 6 1
Production orders 5 1
Shipments 7 1
Required:
Compute the unit product cost of each product listed above.
Answers: 3
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Larner Corporation is a diversified manufacturer of industrial goods. The company's activity-based c...
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