Barnett Products manufactures three types of remote-control devices: Economy, Standard, and Deluxe. The company, which...
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Barnett Products manufactures three types of remote-control devices: Economy, Standard, and Deluxe. 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 Material handling Material insertion Automated machinery Finishing Packaging Total Cost $ 285,000 2,850,000 1,328,000 247,200 247,200 $4,957,400 Cost Driver Number of parts Number of parts Machine hours Direct labor hours Orders shipped The following information pertains to the three product lines for next year: Economy 11,200 1,120 10 Standard 6,200 620 Units to be produced Orders to be shipped Number of parts per unit Machine hours per unit Labor hours per unit Deluxe 3,200 320 25 15 2 4 6 3 3 3 Under Barnett's activity-based costing system, what is the per-unit overhead cost of Deluxe? $267. $277. $275. $417. None of the answers is correct
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