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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 Material insertion Cont Cost Driver $ 232,500 Number of parts 2,490,000 Number of parts Automated machinery 847,500 Machine hours Finishing 185,000 Direct labor hours, Packaging 165,000 Orders shipped Total $3,940,000 The following information pertains to the three product lines for next year Economy Standard Deluxe Units to be produced 11,500 6,500 3,500 orders to be shipped 1,150 650 350 Number of parts per unit 25 30 40 Hachine hours per unit 16 18 20 Labor hours per unit 17 17 17 What is Barnett's pool rate for the material-insertion activity
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