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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
50
Labor hours per unit
2
2
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F4
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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
5/
Labor hours per unit
2
2
What is pool rate for the material-handling activity?
O a.
None of the given answers.
Ob. $1.00 per part.
O c. $13.23 per part.
Od. $6.62 per part.
O e. $2.25 per part.
Esc
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