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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 Driver Number of parts Number of parts Machine hours Cost Material handling Material insertion Automated machinery Finishing Packaging Total $ 225,000 2,475,000 840,000 170,000 Direct labor hours 170,000 $3,880,000 Orders shipped The following information pertains to the three product lines for next year: Economy Standard De Units to be produced Orders to be shipped Number of parts per unit Machine hours per unit Labor hours per unit luxe 2,000 200 25 10,000 1,000 10 5,000 500 15 What is Barnett's pool rate for the material-handling activity? Multiple Choice $1.00 per part. $2.25 per part. $6.62 per labor hour. $13.23 per part. None of the answers is correct. Under Barnett's activity-based costing system, what is the per-unit overhead cost of Economy? Multiple Choice $141. $164 $225 $228. None of the answers is correct
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