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 $ 8.00 per direct labor-hour $9.00 per machine-hour $ 50.00 per setup $ 100.00 per order $ 180.00 per shipment $ 9.00 per direct labor-hour Cost and activity data have been supplied for the following products: Direct materials cost per unit J78 $ 4.50 $ 4.75 B52 $ 45.00 4,000 $ 10.00 500 Direct labor cost per unit Number of units produced per year Total Expected Activity J78 B52 Direct labor-hours 900 50 Machine-hours 2,900 20 Machine setups 4 4 Production orders 8 4 Shipments 12 4 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

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 19E
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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
$ 8.00 per direct labor-hour
$9.00 per machine-hour
$ 50.00 per setup
$ 100.00 per order
$ 180.00 per shipment
$ 9.00 per direct labor-hour
Cost and activity data have been supplied for the following products:
Direct materials cost per unit
J78
$ 4.50
$ 4.75
B52
$ 45.00
4,000
$ 10.00
500
Direct labor cost per unit
Number of units produced per year
Total Expected
Activity
J78
B52
Direct labor-hours
900
50
Machine-hours
2,900
20
Machine setups
4
4
Production orders
8
4
Shipments
12
4
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
Transcribed Image Text: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 $ 8.00 per direct labor-hour $9.00 per machine-hour $ 50.00 per setup $ 100.00 per order $ 180.00 per shipment $ 9.00 per direct labor-hour Cost and activity data have been supplied for the following products: Direct materials cost per unit J78 $ 4.50 $ 4.75 B52 $ 45.00 4,000 $ 10.00 500 Direct labor cost per unit Number of units produced per year Total Expected Activity J78 B52 Direct labor-hours 900 50 Machine-hours 2,900 20 Machine setups 4 4 Production orders 8 4 Shipments 12 4 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
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