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
Labor-related $7.00 per direct labor-hour
Machine-related $5.00 per machine-hour
Machine setups $40.00 per setup
Production orders $200.00 per order
Shipments $120.00 per shipment
General factory $ 5.00 per direct labor-hour
Cost and activity data have been supplied for the following products:
J78 B52
Direct materials cost per unit $7.00 $50.00
Direct labor cost per unit $4.00 $ 10.00
Number of units produced per year 2,000 100
Total Expected
Activity
J78 B52
Direct labor-hours 1,000 20
Machine-hours 3,400 20
Machine setups 8 2
Production orders 6 2
Shipments 7 2
Required:
Compute the unit product cost of each product listed above.