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Larner Corporation is a diversified manufacturer of industrial goods. The company’s activity-based costing system contains the following six act...

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                $11        per direct labor-hour

  Machine processing                     $4           per machine-hour

  Machine setups                             $35         per setup

  Production orders                        $160       per order

  Shipments                                       $125       per shipment

  Product sustaining                        $750       per product

     Activity data have been supplied for the following two products:

 

                                                                                Total Expected Activity

                                                                                                    J78          W52 

  Direct labor-hours                                                         1,175     40  

  Machine-hours                                                               3,200     30  

  Machine setups                                                              15           1  

  Production orders                                                         15           1  

  Shipments                                                                        30           1  

  Product sustaining                                                         1              1  

Required:

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