Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

HiTech Products manufactures three types of remotecontrol devices: Economy, Standard, and Deluxe. The company, which uses activitybased costing, has identified five activities (and related cost

HiTech Products manufactures three types of remotecontrol devices: Economy, Standard, and Deluxe. The company, which uses activitybased 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 $278,000 Number of parts Material insertion 3,450,000 Number of parts Automated machinery 868,000 Machine hours Finishing 237,000 Direct labor hours Packaging 237,000 Orders shipped Total $5,070,000 The following information pertains to the three product lines for next year: Economy Standard Deluxe Units to be produced 19,200 3,100 2,700 Orders to be shipped 1,620 930 250 Number of parts per unit 5 10 15 Machine hours per unit 1 2 5 Labor hours per unit 2 2 2 What is HiTech's pool rate for the packaging activity closest to? $84.64 per order shipped. $4.60 per machine hour. $8.46 per unit. A rate other than those listed above. $4.74 per labor hour.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Implementing Change With Clinical Audit

Authors: Richard W. Baker, Hilary M. Hearnshaw, Noelle Robertson

1st Edition

0471982571, 978-0471982579

More Books

Students also viewed these Accounting questions

Question

3. Is it a topic that your audience will find worthwhile?

Answered: 1 week ago

Question

2. Does the topic meet the criteria specified in the assignment?

Answered: 1 week ago