Rocket Products manufactures three types of remotecontrol devices: Economy, Standard, and Deluxe. The company, which uses activitybased 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 $ Number of parts
Material insertion Number of parts
Automated machinery Machine hours
Finishing Direct labor hours
Packaging Orders shipped
Total $
The following information pertains to the three product lines for next year:
Economy Standard Deluxe
Units to be produced
Orders to be shipped
Number of parts per unit
Machine hours per unit
Labor hours per unit
Assume that Rocket is using a volumebased costing system, and the preceding overhead costs are applied to all products on the basis of direct labor hours. The overhead cost that would be assigned to the Deluxe product line is closest to:
