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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
Activity Rates
Labor-related
$
5.00
per direct labor-hour
Machine-related
10.00
per machine-hour
Machine setups
30.00
per setup
Production orders
200.00
per order
Shipments
140.00
per shipment
General factory
Cost and activity data have been supplied for the following products:
J78
B52
Direct materials cost per unit
5.50
20.00
Direct labor cost per unit
4.25
7.00
Number of units produced per year
2,000
200
Total Expected Activity
Direct labor-hours
1,500
50
Machine-hours
2,600
30
6
1
8
Required:
Compute the unit cost of each product listed above. (Round your answers to 2 decimal places.)
Unit Product Cost
In addition Explain what type of manufacturing would use the "Process Cost Accounting" to account for cost of manufacturing.
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