Question
HiTech 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
HiTech 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 $237,000 Number of parts Material insertion 3,330,000 Number of parts Automated machinery 846,000 Machine hours Finishing 206,000 Direct labor hours Packaging 206,000 Orders shipped Total $4,825,000 The following information pertains to the three product lines for next year: Economy Standard Deluxe Units to be produced 17,000 8,800 2,350 Orders to be shipped 1,620 840 270 Number of parts per unit 10 20 30 Machine hours per unit 1 2 5 Labor hours per unit 3 3 3 What is HiTech's pool rate for the material-handling activity closest to? What is HiTech's pool rate for the automated machinery activity closest to? What is HiTech's pool rate for the finishing activity closest to? What is HiTech's pool rate for the packaging activity closest to? Under an activity-based costing system, what is the per-unit overhead cost of Economy? (Do not round your intermediate calculations round your final answer to 2 decimal places.)
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