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Exercise 3-3 Compute ABC Product Costs [LO3-3] Larner Corporation is a diversified manufacturer of industrial goods....

Exercise 3-3 Compute ABC Product Costs [LO3-3]

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 $ 6.00 per machine-hour
  Machine setups $ 40.00 per setup
  Production orders $ 100.00 per order
  Shipments $ 120.00 per shipment
  General factory $ 6.00 per direct labor-hour

  

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

  

J78 B52
  Direct materials cost per unit $ 6.00     $ 26.00      
  Direct labor cost per unit $ 5.00    $ 6.00      
  Number of units produced per year 1,000       100      
Total Expected Activity
  
J78 B52
  Direct labor-hours 1,300 40
  Machine-hours 2,200 30
  Machine setups 5 2
  Production orders 7 2
  Shipments 6 2
Required:
Compute the unit product cost of each product listed above. (Round your answers to 2 decimal places.)

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