1. 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.
The following information pertains to the three product lines for next year:
What is HiTech's pool rate for the material-handling activity?
What is HiTech's pool rate for the automated machinery activity?
Under an activity-based costing system, what is the per-unit overhead cost of Economy?
Under an activity-based costing system, what is the per-unit overhead cost of Deluxe?