HiFi Company manufactures three types of game console devices: Economy, Standard, and Deluxe. The company,...
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Accounting
HiFi Company manufactures three types of game console 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 | Overhead Cost | Cost Driver |
| Material handling | $450,000 | Number of parts |
| Material insertion | 2,500,000 | Number of parts |
| Automated machinery | 1,680,000 | Machine hours |
| Finishing | 340,000 | Direct labour hours |
| Packaging | 340,000 | Orders shipped |
|
| $3,880,000 |
|
The following information pertains to the three product lines for next year:
|
| Economy | Standard | Deluxe |
| Units to be produced | 20,000 | 10,000 | 4,000 |
| Orders to be shipped | 2,000 | 1,000 | 400 |
| Number of parts per unit | 20 | 30 | 50 |
| Machine hours per unit | 2 | 6 | 10 |
| Labour hours per unit | 4 | 4 | 4 |
What is Hifis activity rate for packaging?
Group of answer choices
$850
$340
$170
$100
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