Reference no: EM13569676

Products manufactures three types of remote-control devices: Economy, Standard, and Deluxe. The company, which uses activity-based costing, has identified five activities (and related cost drivers). Each activity, its budgeted cost, and related cost driver is identified below.

Activity	Cost	Cost Driver
Material handling	$320,000	Number of parts
Material insertion	2,950,000	Number of parts
Automated machinery	897,000	Machine hours
Finishing	256,000	Direct labor hours
Packaging	256,000	Orders shipped
Total	$4,679,000

The following information pertains to the three product lines for next year:

	Economy	Standard	Deluxe
Units to be produced	10,000	7,000	2,300
Orders to be shipped	1,170	740	240
Number of parts per unit	10	20	30
Machine hours per unit	1	3	6
Labor hours per unit	2	2	2

rev: 10_29_2012

What is HiTech's pool rate for the material-handling activity closest to?

	$16.57 per part.
	$3.20 per part.
	$1.04 per part.
	$8.29 per labor hour.
	A rate other than those listed above.

What is HiTech's pool rate for the automated machinery activity closest to?

	$58.00 per machine hour.
	$20.52 per labor hour.
	$20.02 per machine hour.
	$50.42 per unit.
	A rate other than those listed above.

What is HiTech's pool rate for the finishing activity closest to?

	$6.63 per machine hour.
	$6.63 per unit.
	A rate other than those listed above.
	$6.63 per labor hour.
	$9.13 per unit.

What is HiTech's pool rate for the packaging activity closest to?

	$6.49 per machine hour.
	A rate other than those listed above.
	$6.63 per labor hour.
	$11.91 per unit.
	$119.07 per order shipped.

Under an activity-based costing system, what is the per-unit overhead cost of Economy?

	$130.04.
	$153.04.
	An amount other than those listed above.
	$217.04.
	$214.04.