What is the per-unit overhead cost of economy


Response to the following :

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



Total $4,679,000




The following information pertains to the three product lines for next year:


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

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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Cost Accounting: What is the per-unit overhead cost of economy
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