The companys activity-based costing system

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Reference no: EM131018112

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

$

10.00

per direct labor-hour

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

 

  

 
 

J78

 

B52

  Direct labor-hours

1,500

 

50

  Machine-hours

2,600

 

30

  Machine setups

6

 

1

  Production orders

8

 

1

  Shipments

8

 

1

Required: 

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

 

J78

B52

Unit Product Cost

   

Reference no: EM131018112

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