Question

Exercise 3-3 Compute ABC Product Costs [LO3-3]

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	Activity Rates
Labor-related	$	7.00	per direct labor-hour
Machine-related	$	5.00	per machine-hour
Machine setups	$	40.00	per setup
Production orders	$	200.00	per order
Shipments	$	120.00	per shipment
General factory	$	5.00	per direct labor-hour

  

Cost and activity data have been supplied for the following products:

  

	J78		B52
Direct materials cost per unit	$	7.00	$	50.00
Direct labor cost per unit	$	4.00	$	10.00
Number of units produced per year		2,000		100

	Total Expected Activity
	J78		B52
Direct labor-hours	1,000		20
Machine-hours	3,400		20
Machine setups	8		2
Production orders	6		2
Shipments	7		2

Required:

Compute the unit product cost of each product listed above. (Round your answers to 2 decimal places.)

  

HOME

ACCESSIBILITY

PREVIEW

	J78	B52
Unit product cost

+

The full content of this question did not transfer to your assignment. Please try again.
reload

Answer 1