QUESTION 10 HiTech Products manufactures three types of remo

QUESTION 10 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 Cost Material handling Material insertion Automated machinery Finishing Packaging Total S 225,000 2,475,000 840,000 170,000 170,000 3,880,000 Number of parts Number of parts Machine hours Direct labor hours Orders shipped The following information pertains to the three product lines for next year: Economy Standard Deluxe Units to be produced Orders to be shipped Number of parts per unit Machine hours per unit Labor hours per unit 10,000 1,000 10 5,000 500 15 2,000 200 25 What is HiTech\'s pool rate for the packaging activity? $486 per machine hour $5.00 per labor hour $10.00 per unit. $100.00 per order shipped. O None of the other answers is correct.

Solution

Question no 18

Option III only

Product-sustaining activities are performed to support the production of each different type of product. . These costs are assigned to individual product but not proportional to the number of units or batches produced

Packaging Activities	170000
Total No of Orders Shipped =1000+500+200	1700
Pool Rate the Packaging activity =170000/1700	100	Per Order