Activity-Based Costing: Unit product cost
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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 $ 7.30 per direct labor-hour
Machine-related $ 2.96 per machine-hour
Machine setups $ 36.00 per setup
Production orders $ 150.00 per order
Shipments $ 145.00 per shipment
General factory $ 4.62 per direct labor-hour
Cost and activity data have been supplied for the following products:
J78 B52
Direct materials cost per unit $ 6.71 $ 30.07
Direct labor cost per unit $ 4.39 $ 4.43
Number of units produced per year 4,000 30
Total Expected
Activity
J78 B52
Direct labor-hours 1,060 40
Machine-hours 3,000 32
Machine setups 4 1
Production orders 8 1
Shipments 9 1
Required:
Compute the unit product cost of each product listed above. (Round your answers to 2 decimal places.)
J78 B52
Unit product cost $ $.
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Solution Summary
Activity-Based Costing for unit product costs are examined. Larner Corporation is examined.
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