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$230,000Number of partsMaterial insertion2,760,000Number of partsAutomated machinery957,600Machine hoursFinishing207,600Direct labor hoursPackaging207,600Orders shippedTotal$4,362,800
The following information pertains to the three product lines for next year:
EconomyStandardDeluxeUnits to be produced10,1005,1002,100Orders to be shipped1,010510210Number of parts per unit101525Machine hours per unit246Labor hours per unit333
Under Barnett's activity-based costing system, what is the per-unit overhead cost of Standard?
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