What is HiTech\'s pool rate for the automated machinery activity? $24.00 per mac

Question

What is HiTech's pool rate for the automated machinery activity?

$24.00 per machine hour.

$24.50 per labor hour.

$49.42 per unit.

$50.00 per machine hour.

None of the other answers is correct.

$24.00 per machine hour.

$24.50 per labor hour.

$49.42 per unit.

$50.00 per machine hour.

None of the other answers is correct.

Cost Driver Number of parts Number of parts Machine hours Direct labor hours Orders shipped Activity 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

Explanation / Answer

Calculate machine hour :

Machine hour = (10000*1+5000*3+2000*5) = 35000 hour

Automated machine activity rate = Automated machine cost/Total machine hour

= 840000/35000

Automated machine activity rate = 24 per machine hour

So answer is a) $24.00 per machine hour.

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