questions: 1) What is HiTech's pool rate for the material-handling activity closest to? 2)What is...
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questions:
1) What is HiTech's pool rate for the material-handling activity closest to?
2)What is HiTech's pool rate for the automated machinery activity closest to?
3)What is HiTech's pool rate for the finishing activity closest to?
4) What is HiTech's pool rate for the packaging activity closest to?
5) Under an activity-based costing system, what is the per-unit overhead cost of Economy? (Do not round your intermediate calculations round your final answer to 2 decimal places.)
HiTech 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
$298,000
Number of parts
Material insertion
3,060,000
Number of parts
Automated machinery
865,000
Machine hours
Finishing
183,000
Direct labor hours
Packaging
183,000
Orders shipped
Total
$4,589,000
The following information pertains to the three product lines for next year:
Economy
Standard
Deluxe
Units to be produced
12,000
3,200
2,700
Orders to be shipped
1,020
410
295
Number of parts per unit
5
10
15
Machine hours per unit
1
3
6
Labor hours per unit
2
2
2
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