Question
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.
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