Question

Compute the unit product cost of each product listed above

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 $ 6.00 per direct labor-hour $ 10.00 per machine-hour $ 50.00 per setup $ 100.00 per order $ 120.00 per shipment $ 10.00 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 $ $ 178 4.50 5.00 2,000 B52 $26.00 $ 6.00 100 Total Expected Activity J78 B52 1,400 2,400 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 B52 Unit product cost

Answer 1

$ $ 178 9,000 10,000 $ $ B52 Workings 2,600 (2,000 units * $ 4.50) (100 units * $ 26) 600 (2,000 units * $5.00) (100 units * $ 6) Direct material cost Direct labor cost Overhead cost: Labor-related Machine-related Machine setups Production orders Shipments General factory Total cost of product Units Produced Unit Product Cost $ $ $ $ $ $ $ $ $ 8,400 $ 24,000 $ 400 $ 800 $ 720 $ 14,000 $ 67,320 $ 2,000 $ 33.66 $ 180 |(1,400 DLHS * $ 6) (30 DLHS * $ 6) 300 (2,400 MHS * $ 10) (30 MHS * $ 10) 50 (8 orders * $ 50) (1 order * $ 50) 100 (8 orders * $ 100) (1 order * $ 100) 120 (6 Shipment * $ 120) (1 Shipment * $ 120) 300 (1,400 DLHs * $ 10) (30 DLHS * $ 10) 4,250 100 42.50