Login Sign up
Login Or Sign up

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:

Asked 6 months ago
Viewed 675868 times
1
Activity Cost Pool Activity Rates
Supporting direct labor $6 per direct labor
Machine processing $2 per machine - hour
Machine setups $45 per setup
Production orders $160 per order
Shipments $115 per shipment
Product sustaining $775 per product

Activity data have been supplied for the following two products:

Total Expected Activity

J78 W52
Direct labor hours 1,000 30
Machine hours 2,600 20
Machine setups 19 3
Production orders 19 3
Shipments 38 3
Product sustaining 3 3

Required:
Determine the total overhead cost that would be assigned to each of the products.

1 Answer

2

Answer:

Larner Corporation

                                         J78           W52

Total overhead cost    $21,790    $3,505

Explanation:

a) Data and Calculations:

Activity Cost Pool             Activity Rates

Supporting direct labor    $6 per direct labor

Machine processing         $2 per machine - hour

Machine setups                $45 per setup

Production orders            $160 per order

Shipments                        $115 per shipment

Product sustaining          $775 per product

Total Expected Activity

                                      J78     W52

Direct labor hours       1,000      30

Machine hours           2,600      20

Machine setups               19         3

Production orders           19         3

Shipments                      38          3

Product sustaining          3           3

Overhead cost                 Activity rates                     J78           W52

Supporting direct labor    $6 per direct labor         $6,000      $180

Machine processing         $2 per machine - hour    5,200          40

Machine setups                $45 per setup                     855         135

Production orders            $160 per order                 3,040        480

Shipments                        $115 per shipment            4,370        345

Product sustaining          $775 per product             2,325    2,325

Total overhead cost                                              $21,790  $3,505

Share a link to this question

Link Copied!
Copy link
Edit
avatar
Haylie Goodwin
15.5k 3 10 26
answered 6 months ago

Related Questions

Marco Company shows the following costs for three jobs worked on in April.
3 months ago
Marco Company shows the following costs for three jobs worked on in April.
3 months ago
Costs that are necessary to
3 months ago
Costs that are necessary to
3 months ago
Costs that are necessary to
3 months ago
The amount of money you make after subtracting variable and fixed costs is the
3 months ago
The amount of money you make after subtracting variable and fixed costs is the
3 months ago
The amount of money you make after subtracting variable and fixed costs is the
3 months ago
Similarities between job-order costing and process costing include the ______.
3 months ago
Similarities between job-order costing and process costing include the ______.
3 months ago
Costs such as security deposit,inspections, attorney or broker fees are examples of blank
3 months ago
Costs such as security deposit,inspections, attorney or broker fees are examples of blank
3 months ago
1. The
is the sum total of business activity in an area,
3 months ago
Bonds often pay a coupon twice a year. For the valuation of bonds that make semiannual payments, the number of periods doubles, whereas the amount of cash flow decreases by half. Using the values of cash flows and number of periods, the valuation model is adjusted accordingly. Assume that a $1,000,000 par value, semiannual coupon US Treasury note with five years to maturity has a coupon rate of 6%. The yield to maturity (YTM) of the bond is 9.90%. Using this information and ignoring the other costs involved, calculate the value of the Treasury note:______.
3 months ago
Bonds often pay a coupon twice a year. For the valuation of bonds that make semiannual payments, the number of periods doubles, whereas the amount of cash flow decreases by half. Using the values of cash flows and number of periods, the valuation model is adjusted accordingly. Assume that a $1,000,000 par value, semiannual coupon US Treasury note with five years to maturity has a coupon rate of 6%. The yield to maturity (YTM) of the bond is 9.90%. Using this information and ignoring the other costs involved, calculate the value of the Treasury note:______.
3 months ago
The selling price per box for Cynthia's Cookies is $20.43. Fixed costs are $60,000 and the variable cost per box is $10.01.
3 months ago
The selling price per box for Cynthia's Cookies is $20.43. Fixed costs are $60,000 and the variable cost per box is $10.01.
3 months ago
Period costs are always expensed on the income statement in the period in which ______.
3 months ago
Period costs are always expensed on the income statement in the period in which ______.
3 months ago
What incentive motivates a manufacturer to sell a product?.
3 months ago
What incentive motivates a manufacturer to sell a product?.
3 months ago
What incentive motivates a manufacturer to sell a product?.
3 months ago
A short-term debt instrument issued by well-known corporations is called:.
3 months ago
A short-term debt instrument issued by well-known corporations is called:.
3 months ago
A short-term debt instrument issued by well-known corporations is called:.
3 months ago
Mishoe Corporation has provided the following cont Assume that the following information is within the relevant range. as provided the following contribution format income statement. 10) Sales (1,000 units) Variable expenses Contribution margin Fixed expenses Net operating income 50,000 32,500 17,500 12,250 5.250 The break-even point in unit sales is closest to:_________.
3 months ago
Mishoe Corporation has provided the following cont Assume that the following information is within the relevant range. as provided the following contribution format income statement. 10) Sales (1,000 units) Variable expenses Contribution margin Fixed expenses Net operating income 50,000 32,500 17,500 12,250 5.250 The break-even point in unit sales is closest to:_________.
3 months ago
GreenLawns provides a lawn fertilizing and weed control service. The company is adding a special aeration treatment as a low-cost extra service option, which it hopes will help attract new customers. Management is planning to promote this new service in two media: radio and direct-mail advertising. A media budget of $2,500 is available for this promotional campaign. Based on past experience in promoting its other services, GreenLawns obtained the following estimate of the relationship between sales and the amount spent on promotion in these two media.
3 months ago
GreenLawns provides a lawn fertilizing and weed control service. The company is adding a special aeration treatment as a low-cost extra service option, which it hopes will help attract new customers. Management is planning to promote this new service in two media: radio and direct-mail advertising. A media budget of $2,500 is available for this promotional campaign. Based on past experience in promoting its other services, GreenLawns obtained the following estimate of the relationship between sales and the amount spent on promotion in these two media.
3 months ago
At December 31, 2017, Novak Corporation has the following account balances:
3 months ago
At December 31, 2017, Novak Corporation has the following account balances:
3 months ago
Larned Corporation recorded the following transactions for the just completed month. $76,000 in raw materials were purchased on account. $74,000 in raw materials were used in production. Of this amount, $61,000 was for direct materials and the remainder was for indirect materials. Total labor wages of $107,500 were paid in cash. Of this amount, $100,900 was for direct labor and the remainder was for indirect labor. Depreciation of $196,000 was incurred on factory equipment.
3 months ago
Larned Corporation recorded the following transactions for the just completed month. $76,000 in raw materials were purchased on account. $74,000 in raw materials were used in production. Of this amount, $61,000 was for direct materials and the remainder was for indirect materials. Total labor wages of $107,500 were paid in cash. Of this amount, $100,900 was for direct labor and the remainder was for indirect labor. Depreciation of $196,000 was incurred on factory equipment.
3 months ago
Myers Inc. is a new training apparel and footwear retailer based out of New York.
3 months ago
Myers Inc. is a new training apparel and footwear retailer based out of New York.
3 months ago
Assuming the cost of direct materials used is $1930000, compute the total manufacturing costs using the information below.
3 months ago
Assuming the cost of direct materials used is $1930000, compute the total manufacturing costs using the information below.
3 months ago
A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used 6 workers, who together produced an average of 90 carts per hour. Workers receive $20 per hour, and machine cost was $40 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $11 per hour, while output increased by 4 carts per hour.
3 months ago
You would like to go to Miami for vacation, but you are undecided about whether you should go. The round-trip airfares are $600, but you have a frequent-flyer coupon worth $500 that you could use to pay part of the airfare. All other costs for the vacation are exactly $900. The most you would be willing to pay for the trip is $1400. Your only alternative use for your frequent-flyer coupon is a trip to Atlanta for a wedding, which you must attend. Atlanta round-trip airfares are $450.
3 months ago
You would like to go to Miami for vacation, but you are undecided about whether you should go. The round-trip airfares are $600, but you have a frequent-flyer coupon worth $500 that you could use to pay part of the airfare. All other costs for the vacation are exactly $900. The most you would be willing to pay for the trip is $1400. Your only alternative use for your frequent-flyer coupon is a trip to Atlanta for a wedding, which you must attend. Atlanta round-trip airfares are $450.
3 months ago

Company

Legal Stuff

Help

Connect with us

Copyright © 2021.