XYZ Co. manufactures three types of remote-control devices: X, Y, and Z. The company, which use: 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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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8* Use the two tables
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
1
3
5
Labor hours per unit
2
What is pool rate for the material-handling activity?
O a. $1.00 per part.
Ob. $13.23 per part.
O c. $6.62 per part.
Od. None of the given answers.
Windows
O e. $2.25 per part.
2)
Transcribed Image Text: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 1 3 5 Labor hours per unit 2 What is pool rate for the material-handling activity? O a. $1.00 per part. Ob. $13.23 per part. O c. $6.62 per part. Od. None of the given answers. Windows O e. $2.25 per part. 2)
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
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
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