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 $ 9.00 per direct labor-hour $ 5.00 per machine-hour $ 30.00 per setup $ 200.00 per order $ 160.00 per shipment $ 5.00 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 4.00 4.00 2,000 B52 $39.00 $ 6.00 200 Total Expected Activity J78 B52 1,400 30 2,900 30 Direct labor-hours Machine-hours Machine setups Production orders Shipments ليه يا ديا

Answer 1

Calculate unit product cost

	J78	B52
Labor related	12600	270
Machine related	14500	150
Machine setup	180	90
Production orders	800	600
Shipments	800	480
General factory	7000	150
Total overhead	35880	1740
Unit	2000	200
Overhead cost per unit	17.94	8.7
Direct material	4	39
Direct labor	4	6
Unit product cost	25.94	53.70