Home / Questions / EXERCISE 7 4 Second-Stage Allocation LO4 Larner Corporation is a diversified manufacturer...
EXERCISE 7–4 Second-Stage Allocation [LO4]
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 data have been supplied for the following products:
|
|
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 listed above in the activity-based costing system.
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