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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. Cost Driver Activity Cost Material handling $ 231,000 Number of parts Material insertion 2,487,000 Number of parts Automated machinery 846,000 Machine hours Finishing 182,000 Direct labor hours Packaging 182,000 Orders shipped Total $3,928,000 The following information pertains to the three product lines for next year: Economy Standard Deluxe Units to be produced 11,200 6,200 3,200 Orders to be shipped 1,120 620 320 Number of parts per unit 22 27 37 Machine hours per unit 13 15 17 Labor hours per unit 14 14 14 What is Barnett's pool rate for the material-insertion activity?
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