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Determine the total overhead cost

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QUESTION - 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 Cost Pool

Activity Rates

Supporting direct labor

$9 per direct labor-hour

Machine processing

$3 per machine-hour

Machine setups

$50  per setup

Production orders

$150 per order

Shipments

$115 per shipment

Product sustaining

$900 per product

Activity data have been supplied for the following two products:

Total Expected Activity

J78

W52

Direct labor-hours

900

40

Machine-hours

3,000

30

Machine setups

7

2

Production orders

7

2

Shipments

14

2

Product sustaining

2

2

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

Reference no: EM131798886

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