MC Qu. 5-53 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 finishing activity?

Multiple Choice

• $4.79 per labor hour.
• $4.79 per machine hour.
• $4.79 per unit.
• $7.29 per unit.
• None of the answers is correct.

Activity Material handling Material insertion Automated machinery Finishing Packaging Total Cost $ 304,000 2,740,000 896,000 257,000 257,000 $4,454,000 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: Economy 15,000 1,390 10 1 Units to be produced Orders to be shipped Number of parts per unit Machine hours per unit Labor hours per unit Standard 9,800 580 15 Deluxe 2,000 210 25 3 6 2 2 2