Question

Lamer 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 $ 7.00 per direct labor-hour $ 3.00 per machine-hour $ 10.00 per setup $160.00 per order $120.00 per shipment 5 4.00 per direct labor-hour Cost and activity data have been supplied for the following products Direct materials cost per unit olrect labor cost per unit. Number of units produced per year $ $ 5.50 3.75 4,000 11.00 .00 100 Total Expected Activity Direct labor hours 3,20 chinesetus Production onders Shipments Required: Compute the unit product cost of each product listed above. (Do not round Intermediate calculations. Round your answers to 2 decimal places.)

Answer 1

		Job 378	Calculation	Job 852	Calculation
(a)	Units	4,000		100
	Direct material	$26,000	(4000*6.5)	$3,100	(100*31)
	Direct labor cost	$15,000	(4000*3.75)	$600	(100*6)
	Labor related cost	$7,000	(1000*7)	$280	(40*7)
	Machine-related overhead	$9,600	(3200*3)	$90	(30*3)
	Machine setup cost	$200	(40*5)	$40	(40*1)
	Production orders	$800	(160*5)	$160	(160*1)
	Shipments	$1,200	(10*120)	$120	(120*1)
	General factory	$4,000	(4*1000)	$160	(4*40)
(b)	Total product cost	$63,800		$4,550
	Cost per unit(a)/(b)	$15.95		$45.50

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