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 Deluxe?
A. $320.
B. $440.
C. $282.
D. $272.
E. None of the answers is correct.
Answer: B
You might also like to view...
The creation of the European Union has benefited marketers wanting to enter Europe because they now have access to a homogeneous market consisting of 27 countries
Indicate whether the statement is true or false
Which of the following is/are correct regarding the valuation of inventory?
a. GAAP require firms to record inventories at acquisition cost b. GAAP does not permit firms to revalue inventories above acquisition cost c. GAAP require firms to write down inventories when their replacement cost, or market value, declines below acquisition cost d. all of the above e. none of the above
Disadvantages of the regionalized organization structure include
A. the increased complexity of directing worldwide operations. B. product coordination across regions can be challenging. C. the need for placing specialized product managers with line authority onto headquarters' staff. D. its duplication of area and product specialists. E. its inappropriateness for use in global companies.
Using the simple average method, compute the seasonal indices for January, February, and March with the following data.
A. January: 0.10, February: 0.88, March: 0.92
B. January: 0.97, February: 1.01, March: 0.72
C. January: 0.87, February: 1.08, March: 0.92
D. January: 0.97, February: 0.88, March: 0.92