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Exercise 3-3 Please

Activity-Based Costing Required: 1. Compute the activity rate for each activity cost pool. 2. Compute the company's predetermined overhead rate, assuming that the company uses plantwide predetermined overhead rate based on direct labor-hours. EXERCISE 3-3 Compute ABC Product Costs [LO3-3] Larner Corporation is a diversified manufacturer of industrial goods. The company' system contains the following six activity cost pools and activity rates: a single s activity-based costing Activity Cost Pool Labor-related.... Machine-related Machine setups Activity Rates $7.00 per direct labor-hour $3.00 per machine-hour $40.00 per setup $160.00 per order $120.00 per shipment General factory. .. $4.00 per direct labor-hour Cost and activity data have been supplied for the following products: 178 $6.50 $3.75 4,000 B52 Direct materials cost per unit....... Direct labor cost per unit. Number of units produced per year $31.00 $6.00 100 Total Expected Activity J78 1,000 B52 Direct labor-hours... Machine-hours 40 30 3,200 Shipments.... 10 Required: Compute the unit product cost of each product listed above. EXERCISE 3-4 Contrast ABC and Conventional Product Costs [LO3-4] Pacifica Industrial Products Corporation makes two products, Product H and Product L. Product H i expected to sell 40,000 units next year and Product L is expected to sell 8,000 units. A unit of either prod uct requires 0.4 direct labor-hours. The company's total manufacturing overhead for the year is expected to be $1,632,000. Reauired

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