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 Cost Cost Driver Material handling Material insertion Automated machinery Finishing Packaging Total $ 225,000 Number of parts 2,475,000 840,000 Number of parts Machine hours 170,000 Direct labor hours 170,000 $3,880,000 Orders shipped The following information pertains to the three product lines for next year: Units to be produced Orders to be shipped Number of parts per unit Machine hours per unit Labor hours per unit Economy Standard Deluxe 2,000 200 25 10,000 1,000 10 5,000 500 15 What is Barnett's pool rate for the automated machinery activity? Multiple Choice $24.00 per machine hour. $24.50 per labor hour $49.42 per unit. $50.00 per machine hour. None of the answers is correct
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