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
