Use the Following Information to Answer the Following Questions

question 35

Multiple Choice

Use the following information to answer the following Questions
Barnett 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.


-What is Barnett's pool rate for the material-insertion activity?

• A) $11.00 per part.
• B) $49.50 per part.
• C) $16.18 per labor hour.
• D) $1.00 per part.
• E) None of the answers is correct.

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Definitions:

Debt

An amount of money borrowed by one party from another, under the condition that it is to be paid back at a later date, usually with interest.

Equity

The value of an ownership interest in property, including shareholders' ownership in a corporation.

EPS

Earnings Per Share, a financial ratio that measures the amount of net income earned per share of stock outstanding.

Operating Leverage

A measure of how much a company can increase its operating income by increasing revenue, indicating the ratio of fixed costs to variable costs.