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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
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 Material handling $ Material insertion 225,000 2,475,000 Cost Driver Number of parts Number of parts Automated machinery 840,000 Finishing 170,000 Direct labor hours Packaging Total 170,000 Machine hours Orders shipped $3,880,000 The following information pertains to the three product lines for next year: Economy Standard Deluxe Units to be produced 10,000 5,000 2,000 Orders to be shipped 1,000 500 200 Number of parts per unit 10 15 25 Machine hours per unit Labor hours per unit 2 2 2 What is Barnett's pool rate for the packaging activity?
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