X-Ray Machines Ltd What Is X-Ray's Pool Rate for the Material-Handling Activity?
A)$1

X-Ray Machines Ltd. manufactures three product lines: Standard, Deluxe, and Superior. 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. The following information pertains to the three product lines for next year: $\begin{array}{|l|r|r|r|}\hline & \text { Standard } & \text { Deluxe } & \text { Supe rior } \\\hline \text { Units to be produced } & 15,000 & 10,000 & 7,000 \\\hline \text { Orders to be shipped } & 1,000 & 500 & 500 \\\hline \text { Number of parts per unit } & 10 & 15 & 25 \\\hline \text { Machine hours per unit } & 3 & 5 & 7 \\\hline \text { Labour hours per unit } & 2 & 2 & 2 \\\hline\end{array}$ What is X-Ray's pool rate for the material-handling activity?

A) $1.26 per part.
B) $4.00 per part.
C) $9.38 per labour hour.
D) $18.75 per part.
E) $12,000.

Correct Answer:

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