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    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 $ $.

    © BrainMass Inc. brainmass.com October 10, 2019, 7:59 am ad1c9bdddf
    https://brainmass.com/business/financial-accounting-bookkeeping/activity-based-costing-unit-product-cost-602765

    Solution Summary

    Activity-Based Costing for unit product costs are examined. Larner Corporation is examined.

    $2.19