Purchase Solution

Larner Corporation Diversified Manufacturer

Not what you're looking for?

Ask Custom Question

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.

Purchase this Solution

Solution Summary

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

Solution provided by:
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
Recent Feedback
  • "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
  • "Thank, this is more clear to me now."
  • "Awesome job! "
  • "ty"
  • "Great Analysis, thank you so much"
Purchase this Solution

Free BrainMass Quizzes
Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Operations Management

This quiz tests a student's knowledge about Operations Management

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.