Question 2 The questions below pertain to the following Not yet answered HiTech

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Question 2 The questions below pertain to the following Not yet answered 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 Not gradec Cost Driver Number of parts Number of parts Machine hours Direct labor hours Orders shipped Activity Cost Flag question Material handling Material insertion Automated machinery Finishing Packaging Total S 225,000 2,475,000 840,000 170,000 0.000 $3,880,000 The following information pertains to the three product lines for next year Standard Deluxe Economy 10,000 1,000 5,000 500 Units to be produced Orders to be shipped Number of parts per unit Machine hours per unit Labor hours per unit 2,000 200 25 Skip this section and proceed to the questions below Question 3 Tries remaining 4 Points out of 1.00 What is HiTech's pool rate for the material-handling activity? Round your amounts to the nearest cent. Do not enter dollar signs or commas. Answer: Flag question Check What is HiTech's pool rate for the automated machinery activity? Round your amounts to the nearest cent. Do not enter dollar signs or commas. Question 4 Tries remaining: 4 Points out of 1.00 Answer Flag question Check

Explanation / Answer

Solution 3:

HiTech's Pool rate for material handling activity is:

Total cost/ Total of cost driver = 225,0000/225000 = 1

Solution 4:

HiTech's Pool rate for automated machinery activity is:

Solution 5: Pool rate for finishing activity is:

Solution 6: Pool rate for packaging activity is:

Solution 7:

Total amount of overhead allocated to Economy product line is:

Solution 8:

Total amount of overhead allocated to Standard product line is:

Solution9:

Total amount of overhead allocated to Deluxe product line is:

Working Notes:

Material Insertion pool rate:

Activity Material Handling Total Cost 225000 Cost Driver No. of parts Total parts Economy 10,000*10 100000 Standard 5,000*15 75000 Deluxe 2,000*25 50000 Total parts 225000 Pool rate 1

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