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Category > Accounting Posted 18 Aug 2017 My Price 6.00

Larner Corporation

Exercise 3-3 Compute ABC Product Costs [LO3]

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 $ 7.20 per direct labor-hour
  Machine-related $ 3.71 per machine-hour
  Machine setups $ 36.00 per setup
  Production orders $ 180.00 per order
  Shipments $ 132.00 per shipment
  General factory $ 4.66 per direct labor-hour
 
Cost and activity data have been supplied for the following products:
  J78 B52
  Direct materials cost per unit $ 5.52    $ 25.94   
  Direct labor cost per unit $ 4.89    $ 5.50   
  Number of units produced per year   3,700      70   
 
  Total Expected
Activity
   
  J78   B52
  Direct labor-hours 910   40
  Machine-hours 3,100   32
  Machine setups 7   1
  Production orders 6   1
  Shipments 12   1
 
Required:
Compute the unit product cost of each product listed above. (Round your answers to 2 decimal places.)
  J78 B52
  Unit product cost $    $   

 

PLEASE SHOW ALL WORK DONE, INCLUDING CALCULATIONS, TO RECEIVE FULL POINTS.

 

Answers

Maurice Tutor
(5)
Status NEW Posted 18 Aug 2017 03:08 PM My Price 6.00

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