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
|
$9 per direct labor-hour
|
|
Machine processing
|
$3 per machine-hour
|
|
Machine setups
|
$50 per setup
|
|
Production orders
|
$150 per order
|
|
Shipments
|
$115 per shipment
|
|
Product sustaining
|
$900 per product
|
Activity data have been supplied for the following two products:
|
Total Expected Activity
|
|
J78
|
W52
|
|
Direct labor-hours
|
900
|
40
|
|
Machine-hours
|
3,000
|
30
|
|
Machine setups
|
7
|
2
|
|
Production orders
|
7
|
2
|
|
Shipments
|
14
|
2
|
|
Product sustaining
|
2
|
2
|
Required: Determine the total overhead cost that would be assigned to each of the products.