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
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 $800.00 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 1 1
Required: Determine the total overhead cost that would be assigned to each of the products listed above in the activity-based costing system.