act 409561
HiTech 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 | $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 |
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| Total | $4,679,000 | |
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The following information pertains to the three product lines for next year:
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| 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_2012
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?
(Do not round your intermediate calculations round your final answer to 2 decimal places.)
| $130.04. | |
| $153.04. | |
| An amount other than those listed above. | |
| $217.04. | |
| $214.04. |
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