Problem:
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
|
|
Supporting direct labor..................................
|
$7.00 per direct labor-hour
|
|
Machine processing.......................................
|
$3.00 per machine-hour
|
|
Machine setups............................................
|
$40.00 per setup
|
|
Production orders..........................................
|
$160.00 per order
|
|
Shipments....................................................
|
$120.00 per shipment
|
|
Product sustaining....................
|
$800 per product
|
Activity data have been supplied for the following products:
Total Expected Activity
J78 W52
|
Direct labor-hours.........................................
|
1,000 40
|
|
Machine hours..................................
|
3,200 30
|
|
Machine setups.......................................
|
5 1
|
|
Production orders..........................................
|
5 1
|
|
Shipments....................................................
|
10 1
|
|
Product sustaining....................
|
5 1
|
Required:
Determine the total overhead cost that would be assigned to each of the products listed above in the activity-based costing system.