What is pool rate for the automated machinery activity? O a. $50.00 per machine hour. O b. $24.50 per machine hour. O c. $25.60 per machine hour. O d. None of the given answers. O e. $24.00 per machine hour.
What is pool rate for the automated machinery activity? O a. $50.00 per machine hour. O b. $24.50 per machine hour. O c. $25.60 per machine hour. O d. None of the given answers. O e. $24.00 per machine hour.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:What is pool rate for the automated machinery activity?
O a. $50.00 per machine hour.
O b. $24.50 per machine hour.
O c. $25.60 per machine hour.
O d. None of the given answers.
O e. $24.00 per machine hour.

Transcribed Image Text:XYZ Co. manufactures three types of remote-control devices: X, Y, and Z. 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:
Y
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
3
Labor hours per unit
2
What is pool rate for the automated machinery activity?
Oa.
$50.00 per machine hour.
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