MC Qu. 5-51 Barnett Products manufactures three types...

Barnett 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.

What is Barnetts pool rate for the material-insertion activity?

Multiple Choice

• $4.94 per part.
• $22.28 per part.
• $7.08 per labor hour.
• $12.00 per part.
• None of the answers is correct.

Activity Material handling Material insertion Automated machinery Finishing Packaging Total Cost $ 230,500 2,486,000 845,500 181,000 181,000 $3,924,000 Cost Driver Number of parts Number of parts Machine hours Direct labor hours Orders shipped The following information pertains to the three product lines for next year: Standard 6,100 610 Units to be produced Orders to be shipped Number of parts per unit Machine hours per unit Labor hours per unit Economy 11,100 1,110 21 12 13 Deluxe 3,100 310 36 26 14 13 16 13