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 Material handling $ 287,000 Cost Driver Number of parts Material insertion 2,620,000 Number of parts Automated machinery 842,000 Machine hours Finishing 177,000 Direct labor hours Packaging Total 177,000 Orders shipped $4,103,000 The following information pertains to the three product lines for next year. Units to be produced Orders to be shipped Number of parts per unit Machine hours per unit Labor hours per unit Economy Standard 10,000 4,600 Deluxe 2,550 1,780 490 260 15 25 35 1 3 6 3 3 3 What is Barnett's pool rate for the packaging activity?
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 Material handling $ 287,000 Cost Driver Number of parts Material insertion 2,620,000 Number of parts Automated machinery 842,000 Machine hours Finishing 177,000 Direct labor hours Packaging Total 177,000 Orders shipped $4,103,000 The following information pertains to the three product lines for next year. Units to be produced Orders to be shipped Number of parts per unit Machine hours per unit Labor hours per unit Economy Standard 10,000 4,600 Deluxe 2,550 1,780 490 260 15 25 35 1 3 6 3 3 3 What is Barnett's pool rate for the packaging activity?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
Material handling
$ 287,000
Cost Driver
Number of parts
Material insertion
2,620,000
Number of parts
Automated machinery
842,000
Machine hours
Finishing
177,000
Direct labor hours
Packaging
Total
177,000
Orders shipped
$4,103,000
The following information pertains to the three product lines for next year.
Units to be produced
Orders to be shipped
Number of parts per unit
Machine hours per unit
Labor hours per unit
Economy Standard
10,000 4,600
Deluxe
2,550
1,780
490
260
15
25
35
1
3
6
3
3
3
What is Barnett's pool rate for the packaging activity?
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