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	$298,000	Number of parts
Material insertion	3,060,000	Number of parts
Automated machinery	865,000	Machine hours
Finishing	183,000	Direct labor hours
Packaging	183,000	Orders shipped
Total	$4,589,000

The following information pertains to the three product lines for next year:

	Economy	Standard	Deluxe
Units to be produced	12,000	3,200	2,700
Orders to be shipped	1,020	410	295
Number of parts per unit	5	10	15
Machine hours per unit	1	3	6
Labor hours per unit	2	2	2

rev: 10_29_2012

36.

Required information

What is HiTech's pool rate for the material-handling activity closest to?

$2.25 per part.

$16.63 per part.

$8.32 per labor hour.

$4.97 per part.

A rate other than those listed above.

37.

Required information

What is HiTech's pool rate for the automated machinery activity closest to?

$22.88 per machine hour.

A rate other than those listed above.

$23.38 per labor hour.

$50.00 per machine hour.

$56.42 per unit.

38.

Required information

What is HiTech's pool rate for the finishing activity closest to?

$5.11 per machine hour.

A rate other than those listed above.

$7.61 per unit.

$5.11 per unit.

$5.11 per labor hour.