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    Larner Corporation Diversified Manufacturer

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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
    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

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

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