activity based costing 461186

Larner Corporation is a diversified manufacturer of industrial goods. The company%u2019s activity-based costing system contains the following six activity cost pools and activity rates:

Activity Cost Pool

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              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 two 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. (Omit the “$” sign in your response.)

Activity Cost Pool

                 J78

                 W52

  Supporting direct labor

$

$

  Machine processing

  

  

  Machine setups

  

  

  Production orders

  

  

  Shipments

  

  

  Product sustaining

  

  

  Total overhead cost

$

$

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