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What is RTM pool rate for the finishing activity

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Reference no: EM132585910

RTM manufactures three types of remote-control devices: A, B, and C. 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.

Activities                    Costs                   Cost Drivers

Material handling      $225,000        Number of parts

Material insertion        2,475,000     Number of parts

Automated machinery    840,000     Machine hours

Finishing                        170,000     Direct labour hours

Packaging                      170,000          Orders shipped

Total $3,880,000

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

                                              A                  B                          C

Units to be produced        10,000        5,000                2,000

Orders to be shipped         1,000            500                  200

Number of parts per unit      10               15                       25

Machine hours per unit         1                    3                       5

Labour hours per unit           2                       2                   2

Question 1: What is RTM's pool rate for the material-handling activity?

Question 2: What is RTM's pool rate for the automated machinery activity?

Question 3: What is RTM's pool rate for the finishing activity?

Reference no: EM132585910

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