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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 Material handling Material insertion Automated machinery Finishing Packaging Total Cost Cost Driver $ 238,000 Number of parts 2,600,000 Number of parts 875,000 Machine hours 183,000 Direct labor hours 183,000 Orders shipped $4,079,000 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 Standard 19,600 7,600 1,910 880 15 20 1 2 2 Deluxe 2,450 230 25 5 2 Under Barnett's activity based costing system, what is the per-unit overhead cost of Economy? (Do not round your intermediate calculations and round your final answer to 2 decimal places)
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