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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 Material handling $ Material insertion 304,000 2,740,000 Cost Driver Number of parts Number of parts Automated machinery 896,000 Finishing 257,000 Direct labor hours Packaging Total 257,000 Machine hours Orders shipped $4,454,000 The following information pertains to the three product lines for next year: Units to be produced Orders to be shipped Economy 15,000 1,390 Standard 9,800 Deluxe 2,000 580 210 Number of parts per unit 10 15 25 Machine hours per unit 1 3 6 Labor hours per unit 2 2 2 What is Barnett's pool rate for the finishing activity?
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