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. Activity Cost Cost Driver Material handling $ 225,000 Number of parts Material insertion 2,475,000 Number of parts Automated machinery 840,000 Machine hours Finishing 170,000 Direct labor hours Packaging 170,000 Orders shipped Total $ 3,880,000 The following information pertains to the three product lines for next year: Economy Standard Deluxe Units to be produced 10,000 5,000 2,000 Orders to be shipped 1,000 500 200 Number of parts per unit 10 15 25 Machine hours per unit 1 3 5 Labor hours per unit 2 2 2 What is Barnett's pool rate for the automated machinery activity? Group of answer choices a. $24.50 per labor hour. b. $24.00 per machine hour. c. $50.00 per machine hour. d. $49.42 per unit. 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. Activity Cost Cost Driver Material handling $ 225,000 Number of parts Material insertion 2,475,000 Number of parts Automated machinery 840,000 Machine hours Finishing 170,000 Direct labor hours Packaging 170,000 Orders shipped Total $ 3,880,000 The following information pertains to the three product lines for next year: Economy Standard Deluxe Units to be produced 10,000 5,000 2,000 Orders to be shipped 1,000 500 200 Number of parts per unit 10 15 25 Machine hours per unit 1 3 5 Labor hours per unit 2 2 2 What is Barnett's pool rate for the finishing activity? Group of answer choices a. $5.00 per unit. b. $7.50 per unit. c. $5.00 per labor hour. d. $5.00 per machine hour. None of the answers is correct. None of the answers is correct.
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. Activity Cost Cost Driver Material handling $ 225,000 Number of parts Material insertion 2,475,000 Number of parts Automated machinery 840,000 Machine hours Finishing 170,000 Direct labor hours Packaging 170,000 Orders shipped Total $ 3,880,000 The following information pertains to the three product lines for next year: Economy Standard Deluxe Units to be produced 10,000 5,000 2,000 Orders to be shipped 1,000 500 200 Number of parts per unit 10 15 25 Machine hours per unit 1 3 5 Labor hours per unit 2 2 2 What is Barnett's pool rate for the automated machinery activity? Group of answer choices a. $24.50 per labor hour. b. $24.00 per machine hour. c. $50.00 per machine hour. d. $49.42 per unit. 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. Activity Cost Cost Driver Material handling $ 225,000 Number of parts Material insertion 2,475,000 Number of parts Automated machinery 840,000 Machine hours Finishing 170,000 Direct labor hours Packaging 170,000 Orders shipped Total $ 3,880,000 The following information pertains to the three product lines for next year: Economy Standard Deluxe Units to be produced 10,000 5,000 2,000 Orders to be shipped 1,000 500 200 Number of parts per unit 10 15 25 Machine hours per unit 1 3 5 Labor hours per unit 2 2 2 What is Barnett's pool rate for the finishing activity? Group of answer choices a. $5.00 per unit. b. $7.50 per unit. c. $5.00 per labor hour. d. $5.00 per machine hour. None of the answers is correct. None of the answers is correct.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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.
| Activity | Cost | Cost Driver | ||
| Material handling | $ | 225,000 | Number of parts | |
| Material insertion | 2,475,000 | Number of parts | ||
| Automated machinery | 840,000 | Machine hours | ||
| Finishing | 170,000 | Direct labor hours | ||
| Packaging | 170,000 | Orders shipped | ||
| Total | $ | 3,880,000 |
| Economy | Standard | Deluxe | |||||||||
| Units to be produced | 10,000 | 5,000 | 2,000 | ||||||||
| Orders to be shipped | 1,000 | 500 | 200 | ||||||||
| Number of parts per unit | 10 | 15 | 25 | ||||||||
| Machine hours per unit | 1 | 3 | 5 | ||||||||
| Labor hours per unit | 2 | 2 | 2 |
Group of answer choices
The following information pertains to the three product lines for next year:
What is Barnett's pool rate for the finishing activity?
a. $24.50 per labor hour.
b. $24.00 per machine hour.
c. $50.00 per machine hour.
d. $49.42 per unit.
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.
| Activity | Cost | Cost Driver | ||
| Material handling | $ | 225,000 | Number of parts | |
| Material insertion | 2,475,000 | Number of parts | ||
| Automated machinery | 840,000 | Machine hours | ||
| Finishing | 170,000 | Direct labor hours | ||
| Packaging | 170,000 | Orders shipped | ||
| Total | $ | 3,880,000 |
| Economy | Standard | Deluxe | |||||||||
| Units to be produced | 10,000 | 5,000 | 2,000 | ||||||||
| Orders to be shipped | 1,000 | 500 | 200 | ||||||||
| Number of parts per unit | 10 | 15 | 25 | ||||||||
| Machine hours per unit | 1 | 3 | 5 | ||||||||
| Labor hours per unit | 2 | 2 | 2 |
Group of answer choices
a. $5.00 per unit.
b. $7.50 per unit.
c. $5.00 per labor hour.
d. $5.00 per machine hour.
None of the answers is correct.
None of the answers is correct.
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