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 | Cost | Cost Driver | ||||
Material handling | $ | 233,500 | Number of parts | |||
Material insertion | 2,492,000 | Number of parts | ||||
Automated machinery | 848,500 | Machine hours | ||||
Finishing | 187,000 | Direct labor hours | ||||
Packaging | 187,000 | Orders shipped | ||||
Total | $ | 3,948,000 | ||||
The following information pertains to the three product lines for next year:
Economy | Standard | Deluxe | |||||||||
Units to be produced | 11,700 | 6,700 | 3,700 | ||||||||
Orders to be shipped | 1,170 | 670 | 370 | ||||||||
Number of parts per unit | 27 | 32 | 42 | ||||||||
Machine hours per unit | 18 | 20 | 22 | ||||||||
Labor hours per unit | 19 | 19 | 19 | ||||||||
What is Barnetts pool rate for the material-insertion activity?
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