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 $ 10.00 per machine-hour $ 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 Direct materials cost per unit Direct labor cost per unit Number of units produced per year $ $ 5.50 4.25 2,000 B52 $20.00 $ 7.00 200 Total Expected Activity J78 1,500 2,600 30 352 Direct labor-hours Machine-hours Machine setups Production orders Shipments Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.) J78 352 Unit product cost

Answer 1

Calculate unit product cost

	J 78	B52
Labor related	1500*5 = 7500	50*5 = 250
Machine related	26000	300
Machine setup	180	30
Production order	200*8 = 1600	200
Shipments	140*8 = 1120	140
General factory	15000	500
Total overhead	51400	1420
Unit	2000	200
Overhead cost per unit	25.7	7.10
Direct material	5.50	20
Direct labor	4.25	7
Unit product cost	35.45	34.10