Problem: 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:
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Activity Cost Pool
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Activity Rates
|
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Supporting direct labor..................................
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$7.00 per direct labor-hour
|
|
Machine processing.......................................
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$3.00 per machine-hour
|
|
Machine setups............................................
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$40.00 per setup
|
|
Production orders..........................................
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$160.00 per order
|
|
Shipments....................................................
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$120.00 per shipment
|
|
Product sustaining....................
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$800 per product
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Activity data have been supplied for the following products:
Total Expected Activity
J78 W52
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Direct labor-hours.........................................
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1,000 40
|
|
Machine hours..................................
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3,200 30
|
|
Machine setups.......................................
|
5 1
|
|
Production orders..........................................
|
5 1
|
|
Shipments....................................................
|
10 1
|
|
Product sustaining....................
|
5 1
|
Required:
Determine the total overhead cost that would be assigned to each of the products listed above in the activity-based costing system.