HiTech Products manufactures three types of remote-control devices: Economy, Standard, and Deluxe. The company, which uses...

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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 Material handling Material insertion Automated machinery Finishing Packaging Total cost $225,000 2,475,000 840,000 170,000 170,000 $3,880,000 cost driver Number of parts Number of parts Machine hours Direct labor hours Orders shipped 4 The following information pertains to the three product lines for next year: The following information pertains to the three product lines for next year: Units to be produced Orders to be shipped Number of parts per unit Machine hours per unit Labor hours per unit Economy 10,000 1,000 10 1 2 Standard 5,000 500 15 3 2 What is HiTech's pool rate for the material-handling activity? $1.00 per part. $2.25 per part. $6.62 per labor hour. $13.23 per part. A rate other than those listed above. Deluxe 2,000 200 25 5 2 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 Material handling Material insertion Automated machinery Finishing Packaging Total cost $225,000 2,475,000 840,000 170,000 170,000 $3,880,000 cost driver Number of parts Number of parts Machine hours Direct labor hours Orders shipped 4 The following information pertains to the three product lines for next year: The following information pertains to the three product lines for next year: Units to be produced Orders to be shipped Number of parts per unit Machine hours per unit Labor hours per unit Economy 10,000 1,000 10 1 2 Standard 5,000 500 15 3 2 What is HiTech's pool rate for the material-handling activity? $1.00 per part. $2.25 per part. $6.62 per labor hour. $13.23 per part. A rate other than those listed above. Deluxe 2,000 200 25 5 2

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Answer Particulars Economy Standard Deluxe Total ... View the full answer