What is the per-unit overhead cost of Standard

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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

$225,000

Number of parts

Material insertion

2,475,000

Number of parts

Automated machinery

840,000

Machine hours

Finishing

170,000

Direct labor hours

Packaging

170,000

Orders shipped

Total

$3,880,000

 

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

 

Economy

Standard

Deluxe

Units to be produced

10,000

5,000

2,000

Orders to be shipped

1,000

500

200

Number of parts per unit

10

15

25

Machine hours per unit

1

3

5

Labor hours per unit

2

2

2

Required - Under Barnett's activity-based costing system, what is the per-unit overhead cost of Standard?

Reference no: EM132774654

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