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
Labor-related	$	5.00	per direct labor-hour
Machine-related	$	4.00	per machine-hour
Machine setups	$	60.00	per setup
Production orders	$	100.00	per order
Shipments	$	120.00	per shipment
General factory	$	4.00	per direct labor-hour

  

Cost and activity data have been supplied for the following products:

  

	J78		B52
Direct materials cost per unit	$	3.50	$	20.00
Direct labor cost per unit	$	3.75	$	9.00
Number of units produced per year		2,000		400

	Total Expected Activity
	J78		B52
Direct labor-hours	1,200		40
Machine-hours	2,800		20
Machine setups	7		4
Production orders	7		4
Shipments	5		4

Required:

Compute the unit product cost of each product listed above. (Round your answers to 2 decimal places.)

	J78 B52 Unit product cost

Answer 1

Unit product cost= Total cost/ Units produced