Question
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.
ActivityCostCost DriverMaterial handling$287,000Number of partsMaterial insertion2,620,000Number of partsAutomated machinery842,000Machine hoursFinishing177,000Direct labor hoursPackaging177,000Orders shippedTotal$4,103,000
The following information pertains to the three product lines for next year:
EconomyStandardDeluxeUnits to be produced10,0004,6002,550Orders to be shipped1,780490260Number of parts per unit152535Machine hours per unit136Labor hours per unit333
Under Barnett's activity-based costing system, what is the per-unit overhead cost of Economy?(Do not round your intermediate calculations and round your final answer to 2 decimal places.)
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