question archive Lerner Corporation is a diversified manufacturer of industrial goods
Lerner Corporation is a diversified manufacturer of industrial goods
Subject:AccountingPrice: Bought3
Lerner 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 |
$ |
4.00 |
per machine-hour |
|
Machine setups |
$ |
50.00 |
per setup |
|
Production orders |
$ |
100.00 |
per order |
|
Shipments |
$ |
150.00 |
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 |
$ |
3.00 |
$ |
20.00 |
|
Direct labor cost per unit |
$ |
3.00 |
$ |
6.00 |
|
Number of units produced per year |
2,000 |
100 |
||
|
Total Expected Activity |
|||
|
J78 |
B52 |
||
|
Direct labor-hours |
1,000 |
20 |
|
|
Machine-hours |
2,000 |
50 |
|
|
Machine setups |
6 |
3 |
|
|
Production orders |
5 |
3 |
|
|
Shipments |
8 |
3 |
|
Required:
Compute the unit product cost of each product listed above.
