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 Labor hours per unit 2 2 What is pool rate for the material-handling activity? O a. $2.25 per part. O b. $6.62 per part. O C. None of the given answers. O d. $1.00 per part. O e. $13.23 per part.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Question
X
Y
Time left 1:59:31
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
What is pool rate for the material-handling activity?
O a.
$2.25 per part.
O b. $6.62 per part.
O C. None of the given answers.
O d. $1.00 per part.
O e. $13.23 per part.
Transcribed Image Text:X Y Time left 1:59:31 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 What is pool rate for the material-handling activity? O a. $2.25 per part. O b. $6.62 per part. O C. None of the given answers. O d. $1.00 per part. O e. $13.23 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
10,000
5,000
2,000
Units to be produced
1,000
500
200
Orders to be shipped
10
15
25
Number of parts per unit
1
131
Machine hours per unit
Labor hours per unit
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 10,000 5,000 2,000 Units to be produced 1,000 500 200 Orders to be shipped 10 15 25 Number of parts per unit 1 131 Machine hours per unit Labor hours per unit
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