Larner Corporation is a diversified manufacturer of industrial goods

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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 $35 per setup

Production orders $150 per order

Shipments $120 per shipment

Product sustaining $875 per product

Activity data have been supplied for the following two products:

Total Expected Activity

J78 W52

Direct labor-hours 1,100 50

Machine-hours 2,600 40

Machine setups 9 1

Production orders 9 1

Shipments 18 1

Product sustaining 1 1

Required:

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

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