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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 cost
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 Material handling Material insertion Automated machinery Finishing Packaging Total Cost $ 278,000 3,450,000 868,000 237,000 237,000 $5,070,000 Cost Driver Number of parts Number of parts Machine hours Direct labor hours Orders shipped The following information pertains to the three product lines for next year: Economy 19,200 1,620 Standard 3,100 930 10 Deluxe 2,700 250 Units to be produced Orders to be shipped Number of parts per unit Machine hours per unit Labor hours per unit 5 15 1 2 5 2 2 2 Under Barnett's activity-based costing system, what is the per-unit overhead cost of Economy? (Do not round your intermediate calculations and round your final answer to 2 decimal places.) Multiple Choice $127.22. $150.22. $211.22. $214.22. None of the answers is correct
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