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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 Cost Cost Driver Material handling $ 304,000 Number of parts Material insertion 2, 740, 000 Number of parts Automated machinery 896, 060 Machine hours Finishing 257,000 Direct labor hours Packaging 257,000 Orders shipped Total $4, 454, 000 The following information pertains to the three product lines for next year: Economy Standard Deluxe Units to be produced 15, 000 9,806 2,000 Orders to be shipped 1, 390 580 210 Number of parts per unit 10 15 25 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? Multiple Choice O $15.89 per machine hour. O $16.39 per labor hour. O $58.42 per unit. O $56.00 per machine hour. O None of the answers is correct
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