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	Activity Rates
Labor-related	$	9.00	per direct labor-hour
Machine-related	$	5.00	per machine-hour
Machine setups	$	30.00	per setup
Production orders	$	200.00	per order
Shipments	$	160.00	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	$	4.00			$	39.00
Direct labor cost per unit	$	4.00			$	6.00
Number of units produced per year		2,000				200

	Total Expected Activity
		J78			B52
Direct labor-hours		1,400			30
Machine-hours		2,900			30
Machine setups		6			3
Production orders		4			3
Shipments		5			3

Compute the unit product cost of each product listed above.

Answer 1