Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 Material handling Material insertion Automated machinery Finishing Packaging Total Cost $ 269,000 3,390,000 872,000 256,000 256,000 $5,043,000 Cost Driver Number of parts Number of parts Machine hours Direct labor hours Orders shipped The following Information pertains to the three product lines for next year. Units to be produced Orders to be shipped Number of parts per unit Machine hours per unit Labor hours per unit Economy 10,000 1,720 10 Standard 4,100 710 15 3 3 Deluxe 2,550 200 25 6 3 1 3 What is Barnett's pool rate for the material handling activity? Multiple Choice $1.19 per part. $269 per part O $5.39 per labor hour. O $10.77 per part O None of the answers is correct
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started