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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 onvers). Each activity, its budgeted cost, and related cost driver is identified below. Activity Material handling Material insertion Cost Driver Cost $233,500 Number of parts 2,492,000 Number of parts Automated machinery i 848,5001 Machine hours Finishing 187,000 Direct labor hours Packaging Total 187,000 Orders shipped $3,948,000 The following information pertains to the three product lines for next year Economy Standard Deluxe Units to be produced 11,700 6,700 3,700 Orders to be shipped 1,170 670 370 Number of parts per unit 27 32 42 Machine hours per unit 20 22 Labor hours per unit 19 19 19 What is Bamett's pool rate for the material insertion activity?
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