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 material-handling activity?

A. $2.25 per part.
B. $6.62 per labor hour.
C. $13.23 per part.
D. $1.00 per part.
E. None of the answers is correct.


Answer: D

Business

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