HiTech Products manufactures three types of remote-control devices: Economy, Standard, and Deluxe. The company, which uses activity-based costing, has identified five activities . Each activity, its budgeted cost, and related cost driver is identified below.
| Activity |
Cost |
Cost Driver |
| Material handling |
$320,000 |
Number of parts |
| Material insertion |
2,950,000 |
Number of parts |
| Automated machinery |
897,000 |
Machine hours |
| Finishing |
256,000 |
Direct labor hours |
| Packaging |
256,000 |
Orders shipped |
|
|
|
| Total |
$4,679,000 |
|
|
|
|
The following information pertains to the three product lines for next year:
|
Economy |
Standard |
Deluxe |
| Units to be produced |
10,000 |
7,000 |
2,300 |
| Orders to be shipped |
1,170 |
740 |
240 |
| Number of parts per unit |
10 |
20 |
30 |
| Machine hours per unit |
1 |
3 |
6 |
| Labor hours per unit |
2 |
2 |
2 |
rev: 10_29_20
What is HiTech's pool rate for the material-handling activity closest to?
|
$16.57 per part. |
|
$3.20 per part. |
|
$1.04 per part. |
|
$8.29 per labor hour. |
|
A rate other than those listed above. |
What is HiTech's pool rate for the automated machinery activity closest to?
|
$58.00 per machine hour. |
|
$20.52 per labor hour. |
|
$20.02 per machine hour. |
|
$50.42 per unit. |
|
A rate other than those listed above. |
What is HiTech's pool rate for the finishing activity closest to?
|
$6.63 per machine hour. |
|
$6.63 per unit. |
|
A rate other than those listed above. |
|
$6.63 per labor hour. |
|
$9.13 per unit. |
What is HiTech's pool rate for the packaging activity closest to?
|
$6.49 per machine hour. |
|
A rate other than those listed above. |
|
$6.63 per labor hour. |
|
$11.91 per unit. |
|
$119.07 per order shipped. |
Under an activity-based costing system, what is the per-unit overhead cost of Economy?
|
$130.04. |
|
$153.04. |
|
An amount other than those listed above. |
|
$217.04. |
|
$214.04. |