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Barnett Products manufactures three types of remote-control devices: Economy, Standard, and Deluse. 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 Deluse. 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 Cont Cost Driver $ 233,000 Number of parts 2,491,000 Number of parts 848,000 Machine hours 186,000 Direct labor hours 186,000 Orders shipped $3,944,000 The following Information pertains to the three product lines for next year Economy Standard Deluxe Units to be produced 11,600 6,600 3,600 Orders to be shipped 1,160 660 360 Number of parts per unit 26 31 41 Machine hours per unit 19 21 Labor hours per unit 17 18 18 18 What is Barnett's pool rate for the material insertion activity? What is Barnett's pool rate for the material-insertion activity? Multiple Choice $3.81 per part $16.88 per part $5.46 per labor hour. $17.00 per part None of the answers is correct
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