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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 Cost $ 227,000 Cost Driver Number of parts Material insertion 2,479,000 Number of parts Automated machinery 842,000 Finishing 174,000 Machine hours Direct labor hours Packaging 174,000 Orders shipped Total $3,896,000 The following information pertains to the three product lines for next year. Economy Units to be produced 10,400 Standard 5,400 Deluxe 2,400 Orders to be shipped 1,040 540 240 Number of parts per unit 14 19 29 Machine hours per unit 5 7 9 Labor hours per unit 6 6 6 What is Barnett's pool rate for the material-insertion activity
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