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.ActivityCostCost DriverMaterial handling$225,000 Number of partsMaterial insertion 2,475,000 Number of partsAutomated machinery 840,000 Machine hoursFinishing 170,000 Direct labor hoursPackaging 170,000 Orders shippedTotal$3,880,000 The following information pertains to the three product lines for next year: Economy Standard DeluxeUnits 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 5 Labor hours per unit 2 2 2 What is Barnett's pool rate for the packaging activity?Group of answer choicesa. $4.86 per machine hour.b. $100.00 per order shipped.c. $5.00 per labor hour.d. $10.00 per part.e. None of the answers is correct. 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.ActivityCostCost DriverMaterial handling$225,000 Number of partsMaterial insertion 2,475,000 Number of partsAutomated machinery 840,000 Machine hoursFinishing 170,000 Direct labor hoursPackaging 170,000 Orders shippedTotal$3,880,000 The following information pertains to the three product lines for next year: Economy Standard DeluxeUnits 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 5 Labor hours per unit 2 2 2 Under Barnett's activity-based costing system, what is the per-unit overhead cost of Economy?Group of answer choicesa. $228.b. $164.c. $225.d. $141.e. None of the answers is correct.

Solution... Total number of orders = 1,000 + 500 + 200 = 1,700 Total number of parts Economy =…

Answered: Barnett Products manufactures three…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 11E: Lonsdale Inc. manufactures entry and dining room lighting fixtures. Five activities are used in...

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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	$	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:

	Economy		Standard	Deluxe
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	5
Labor hours per unit		2			2	2

What is Barnett's pool rate for the packaging activity?

Group of answer choices

a. $4.86 per machine hour.

b. $100.00 per order shipped.

c. $5.00 per labor hour.

d. $10.00 per part.

e. None of the answers is correct.

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:

	Economy		Standard	Deluxe
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	5
Labor hours per unit		2			2	2

Under Barnett's activity-based costing system, what is the per-unit overhead cost of Economy?

Group of answer choices

a. $228.

b. $164.

c. $225.

d. $141.

e. None of the answers is correct.

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