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 10 15 25 unit Machine hours per unit 1 3 5| Labor hours per unit 2 2 2

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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And this is a supplement of the question . What is pool rate for the material -insertion activity ? a . None of the given answers . b. 11.00 per part . c. 16.18 per part . d $1.00 per part . 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
10
15
25
unit
Machine hours per unit
3
Labor hours per unit
2
2
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 10 15 25 unit Machine hours per unit 3 Labor hours per unit 2 2
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