Share
Explore BrainMass

Larner Corporation Diversified Manufacturer

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
Supporting direct labor $9 per direct labor-hour
Machine processing $3 per machine-hour
Machine setups $35 per setup
Production orders $150 per order
Shipments $120 per shipment
Product sustaining $875 per product

Activity data have been supplied for the following two products:

Total Expected Activity
J78 W52

Direct labor-hours 1,100 50
Machine-hours 2,600 40
Machine setups 9 1
Production orders 9 1
Shipments 18 1
Product sustaining 1 1

Required:
Determine the total overhead cost that would be assigned to each of the products.

Solution Summary

Your tutorial in excel is attached and indicates the process and the structure to approach this problem.

$2.19