velue 10.00 points Lamer Corporation is a diversified manufacturer of industrial

Question

velue 10.00 points Lamer 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 Labor-related Machine-related Machine setups Production orders Shipments General factory Activity Rates S 7.00 per direct labor-hour S 7.00 per machine-hour $ 40.00 per setup $100.00 per order 5100.00 per shipment S 7.00 per direct labor-hour Cost and activity data have been supplied for the following products J78 B52 Direct materials cost per unit Direct labor cost per unit Number of units produced per year 5.00 S 34.00 $ 4.50 S 5.00 200 5,000 Total Expected Activity J78 B52 1,200 50 3,200 20 Direct labor-hours Machine-hours Machine setups Production orders Shipments 5 Required Compute the unit product cost of each product listed above (Round your answers to 2 decimal places.) J78 B52 Unit product cost Hints References eBook & Resources

Explanation / Answer

Ans. J78 B52 Unit Product Cost 17.62 46.8 *Unit Product cost: J78 B52 Direct materials cost per unit 5 34 Direct materials cost per unit 4.5 5 Activity cost per unit 8.12 7.8 Total unit product cost 17.62 46.8 *Activity Cost per unit = Total activity / number of units produced J78 40600 / 5000 8.12 B52 1560 / 200 7.8 *Calculation of Activity cost per unit: Activity cost pool Activity Total expected activity Total Activity Rates J78 B52 J78 B52 Labor-related 7 1200 50 8400 350 Machine-related 7 3200 20 22400 140 Machine setups 40 5 3 200 120 Production orders 100 7 3 700 300 Shipments 100 5 3 500 300 General factory 7.0 1200.0 50.0 8400 350 Total 40600 1560 *Total activity = Activity rates * Total expected activity *General factory activity is based on Direct labor hours so the expected activity of direct labor hours is applied for general factory.

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