70.2K

Verified Solution

Link Copied!

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	$	277,000			Number of parts
Material insertion		3,270,000			Number of parts
Automated machinery		874,000			Machine hours
Finishing		197,000			Direct labor hours
Packaging		197,000			Orders shipped
Total	$	4,815,000

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

	Economy				Standard				Deluxe
Units to be produced		19,400				8,700				2,000
Orders to be shipped		1,130				760				285
Number of parts per unit		10				20				30
Machine hours per unit		1				3				6
Labor hours per unit		2				2				2

What is Barnetts pool rate for the material-handling activity?

3arnett 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 oost drivers). Each activity, its budgeted cost, and related cost driver is identified below. The following information pertains to the three product lines for next year: What is Barnett's pool rate for the material-handling activity

Answer & Explanation Solved by verified expert

See Answer