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In: Accounting
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.) |
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Larner Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the...
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
$
7.00
per direct labor-hour
Machine-related
$
7.00
per machine-hour
Machine setups
$
30.00
per setup
Production orders
$
200.00
per order
Shipments
$
140.00
per shipment
General factory
$
7.00
per direct labor-hour
Cost and activity data have been supplied for the following
products:
J78
B52
Direct materials cost...
Larner Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the...
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...
Larner Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the...
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...
Exercise 3-4 Contrast ABC and Conventional Product Costs [LO3-4] Pacifica Industrial Products Corporation makes two products,...
Exercise 3-4 Contrast ABC and Conventional Product Costs
[LO3-4]
Pacifica Industrial Products Corporation makes two products,
Product H and Product L. Product H is expected to sell 39,000 units
next year and Product L is expected to sell 7,800 units. A unit of
either product requires 0.3 direct labor-hours.
The company's
total manufacturing overhead for the year is expected to be
$1,193,400.
Required:
1-a.
The company currently applies manufacturing overhead to products
using direct labor-hours as the allocation base. If...
Exercise 3-10 Contrasting ABC and Conventional Product Costs [LO3-2, LO3-3, LO3-4] Rocky Mountain Corporation makes two...
Exercise 3-10 Contrasting ABC and Conventional Product Costs
[LO3-2, LO3-3, LO3-4]
Rocky Mountain Corporation makes
two types of hiking boots—Xactive and Pathbreaker. Data concerning
these two product lines appear below:
Xactive
Pathbreaker
Direct materials per
unit
$
65.20
$
51.40
Direct labor cost
per unit
$
18.60
$
13.40
Direct labor-hours
per unit
1.4
DLHs
1
DLHs
Estimated annual
production and sales
29,000
units
79,000
units
The company has a conventional costing system in which
manufacturing overhead is applied to...
Klumper Corporation is a diversified manufacturer of industrial goods. The company’s activity-based costing system contains the...
Klumper 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
$
7.00
per direct
labor-hour
Machine
processing
$
3.00
per
machine-hour
Machine
setups
$
45.00
per setup
Production
orders
$
160.00
per order
Shipments
$
130.00
per
shipment
Product
sustaining
825.00
per product
Activity data have
been supplied for the following two products:
Total Expected
Activity
K425...
Klumper Corporation is a diversified manufacturer of industrial goods. The company’s activity based costing system contains...
Klumper 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
$9.00
per direct labor-hour
Machine
processing
$3.00
per machine-hour
Machine setups
$40.00
per setup
Production
orders
$150.00
per order
Shipments
$115.00
per shipment
Product
sustaining
$900.00
per product
Activity data have been supplied
for the following two products:
Total Expected Activity
K425
M67
Number...
Klumper Corporation is a diversified manufacturer of industrial goods. The company’s activity based costing system contains...
Klumper 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
$10.00
per direct labor-hour
Machine
processing
$3.00
per machine-hour
Machine setups
$35.00
per setup
Production
orders
$150.00
per order
Shipments
$120.00
per shipment
Product
sustaining
$775.00
per product
Activity data have been supplied
for the following two products:
Total Expected Activity
K425
M67
Number...
Klumper Corporation is a diversified manufacturer of industrial goods. The company’s activity-based costing system contains the...
Klumper 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
$
4
per
machine-hour
Machine
setups
$
45
per setup
Production
orders
$
160
per order
Shipments
$
115
per
shipment
Product
sustaining
$
800
per product
Activity data have
been supplied for the following two products:
Total Expected
Activity
K425...
Klumper Corporation is a diversified manufacturer of industrial goods. The company’s activity-based costing system contains the...
Klumper 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
$
8
per direct labor-hour
Machine processing
$
4
per machine-hour
Machine setups
$
45
per setup
Production orders
$
150
per order
Shipments
$
110
per shipment
Product sustaining
$
825
per product
Activity data have been supplied for the following two
products:
Total Expected Activity
K425...
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