Reference no: EM132658774
Question - Barnett 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 $269,000 Number of parts Material insertion 3,390,000 Number of parts Automated machinery 872,000 Machine hours Finishing 256,000 Direct labor hours Packaging 256,000 Orders shipped Total $5,043,000
The following information pertains to the three product lines for next year:
Economy Standard Deluxe Units to be produced 10,000 4,100 2,550 Orders to be shipped 1,720 710 200 Number of parts per unit 10 15 25 Machine hours per unit 1 3 6 Labor hours per unit 3 3 3
Required - What is Barnett's pool rate for the material-handling activity?
a. $1.19 per part.
b. $2.69 per part.
c. $5.39 per labor hour.
d. $10.77 per part.
e. None of the answers is correct.
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