Question

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 Activity Rates $ 5.00 per direct labor-hour $ 6.00 per machine-hour $ 40.00 per setup $ 100.00 per order $ 120.00 per shipment $ 6.00 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 $ $ J78 6.00 5.00 1,000 B52 $26.00 $ 6.00 100 B52 Total Expected Activity J78 1,300 2,200 30 2 Direct labor-hours Machine-hours Machine setups Production orders Shipments NNNU 6 Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.) J78 B52 Unit product cost

Answer 1

Activity Based Costing 1300 j78 B52 OH allocated = Activy OH allocated Activity Rate Activity *rate Activity = Activy *rate Labor Related 6500 40 200 Machine Related 6 2200 13200 30 180 Machine Setup 40 5| 2002 80 Prodcution order 100 7002 200 Shipments 1206 720 240 General Factory 6 1300 7800 240 Total Overhead cost 29120 Overheas cost per Unit 29.12 11.40 Direct Materila 6.00 26.00 DiecrLabor 5.00 6.00 Cost per unit 40.12 43.40 Answers Unit Podcut Cost per J78 40.12 Unit Prodcut Cost Per B52 43.40 1140