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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 Material handling Material insertion Cost Cost Driver Number of parts $ 287,000 2,620,000 Number of parts Automated machinery 842,000 Machine hours Finishing 177,000 Direct labor hours Packaging Total 177,000 Orders shipped $4,103,000 The following information pertains to the three product lines for next year: Economy Standard Deluxe Units to be produced 10,000 4,600 2,550 Orders to be shipped 1,780 490 260 Number of parts per unit 15 25 35 Machine hours per unit 1 3 6 Labor hours per unit 3 3 3 What is Barnett's pool rate for the packaging activity?
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