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 1 Labor hours per unit 2 What is pool rate for the material-insertion activity?
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 1 Labor hours per unit 2 What is pool rate for the material-insertion activity?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Orders to be shipped
1,000
500
200
Number of parts per unit
10
15
25
Machine hours per unit
1
3
Labor hours per unit
2
What is pool rate for the material-insertion activity?
None of the given answers.
O a.
O b. $16.18 per part.
O c. $1.00 per part.
O d. $11.00 per part.
O e. $49.50 per part.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe89b18a0-3ff4-4e2a-b5ab-bb29a4992ada%2F6ffccd9e-a915-42bd-aff5-ba564713a411%2Fs664i9r_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Orders to be shipped
1,000
500
200
Number of parts per unit
10
15
25
Machine hours per unit
1
3
Labor hours per unit
2
What is pool rate for the material-insertion activity?
None of the given answers.
O a.
O b. $16.18 per part.
O c. $1.00 per part.
O d. $11.00 per part.
O e. $49.50 per part.
![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
1
5
Labor hours per unit
2
2
What is pool rate for the material-insertion activity?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe89b18a0-3ff4-4e2a-b5ab-bb29a4992ada%2F6ffccd9e-a915-42bd-aff5-ba564713a411%2F3s2ilm_processed.jpeg&w=3840&q=75)
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
1
5
Labor hours per unit
2
2
What is pool rate for the material-insertion activity?
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