X-Ray Machines Ltd What Is X-Ray's Pool Rate for the Finishing Activity?
A)$3

question 31

Multiple Choice

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 finishing activity?

• A)$3.13 per labour hour.
• B)$3.13 per machine hour.
• C)$3.13 per unit.
• D)$3.13 per part.
• E)$50,000.

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Definitions:

Specific Period

A defined length of time during which certain events or conditions occur or are measured.

Patronage

The support or regular business given to a store, hotel, or other service provider by customers.

Behavioral Segmentation

The process of dividing a market into groups based on consumer knowledge, attitudes, uses, or responses to a product.

MicroFridge

A compact combination of a refrigerator and microwave oven, typically used in small living spaces such as dormitory rooms.