question archive RTM manufactures three types of remote-control devices: A, B, and C
RTM manufactures three types of remote-control devices: A, B, and C
Subject:AccountingPrice: Bought3
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
-What is RTM's pool rate for the material-handling activity?
-What is RTM's pool rate for the automated machinery activity?
-What is RTM's pool rate for the finishing activity?
