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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 activities (and related
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 $ 299, 000 Number of parts Material insertion 3, 360, 000 Number of parts Automated machinery 896, 000 Machine hours Finishing 215,000 Direct labor hours Packaging 215,000 Orders shipped Total $4,985, 000 The following Information pertains to the three product lines for next year: Economy Standard Deluxe Units to be produced 14, 400 5, 700 2 , 800 Orders to be shipped 1, 240 530 280 Number of parts per unit 5 15 25 Machine hours per unit 1 2 6 Labor hours per unit 2 2 2 Under Barnett's activity-based costing system, what is the per-unit overhead cost of Economy? (Do not round your Intermed late calculations and round your final answer to 2 decimal places.) Multiple Choice
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