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Barnett Products manufactures three types of remote - control devices: Economy, Standard, and Deluxe. The company, which uses activity - based costing, has identified five
Barnett Products manufactures three types of remotecontrol devices: Economy, Standard, and Deluxe. The company, which uses activitybased 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 $ Number of parts
Material insertion Number of parts
Automated machinery Machine hours
Finishing Direct labor hours
Packaging Orders shipped
Total $
The following information pertains to the three product lines for next year:
Economy Standard Deluxe
Units to be produced
Orders to be shipped
Number of parts per unit
Machine hours per unit
Labor hours per unit
What is Barnetts pool rate for the packaging activity?
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