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Barnett Products manufactures three types of remotecontrol devices: Economy, Standard, and Deluxe. The company, which uses activitybased costing, has identied ve activities [and related cost
Barnett Products manufactures three types of remotecontrol devices: Economy, Standard, and Deluxe. The company, which uses activitybased costing, has identied ve activities [and related cost drivers). Each activity, its budgeted cost, and related cost driver is identied below. Activity Cost Cost Driver Material handling 5 328,888 Number of parts Material insertion 2,958,888 Number of parts Automated machinery 897,888 Machine hours Finishing 256,888 Direct labor hours Packaging 256,888 Orders shipped Total $4,579,933 The following information pertains to the three product lines for next year: Economy Standard Deluxe Units to be produced 18,888 7,888 2,388 Orders to be shipped 1,178 748 248 Number of parts per unit 18 28 38 Machine hours per unit 1 3 6 Labor hours per unit 2 2 2 What is Barnett's pool rate for the automated machinery activity
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