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Rocket Products manufactures three types of remote-control devices: Economy, Standard, and Deluxe. The :ompany, which uses activity-based costing, has identified ve activities {and related cost
Rocket Products manufactures three types of remote-control devices: Economy, Standard, and Deluxe. The :ompany, which uses activity-based costing, has identified ve activities {and related cost drivers]. Each activity, its budgeted cost, and related cost driver is identied below. Activity Cost Cost Driver Material handling $ 239,888 Number of parts Material insertion 2,489,888 Number of parts Automated machinery 854,888 Machine hours Finishing 184,888 Direct labor hours Packaging 184,998 Orders shipped Total $3,958,888 Fhe following information pertains to the three product lines for next yea r: Economy Standard Deluxe Units to be produced 11,488 6,488 3,488 Orders to be shipped 1,148 648 348 Number o'F parts per unit 18 15 25 Machine hours per unit 1 3 5 Labor hours per unit 2 2 2 Assume that Rocket is using a volume-based costing system, and the preceding overhead costs are applied :0 all products on the basis of direct labor hours. The overhead cost that would be assigned to the Standard )roduct line is closest to: Multiple Choice 0 $633,481. $840,281. $991053. $1,192,453. 0000 None of the answers is correct
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