Question
Activity Handling materials Inspecting product Processing purchase orders Paying suppliers Insuring the factory Designing packaging Expected Costs $625,000 900,000 105,000 175,000 300,000 75,000 Expected
Activity Handling materials Inspecting product Processing purchase orders Paying suppliers Insuring the factory Designing packaging Expected Costs $625,000 900,000 105,000 175,000 300,000 75,000 Expected Activity 100,000 parts 1,500 batches 700 orders 500 invoices 40,000 square feet 2 models Assume that the following information is available for the company's two products for the first quarter of this year. Production volume Parts required Batches made Deluxe Model 10,000 units 20,000 parts 250 batches Basic Model 30,000 units 30,000 parts 100 batches E 11 Purchase orders Invoices Space occupied Models 50 orders 50 invoices 10,000 sq. ft. 1 model 20 orders 10 invoices 7,000 sq. ft 1 model Required: Compute activity rates for each activity and assign overhead costs to each product model using activity-based costing (ABC). What i the overhead cost per unit of each model? (Round activity rate and average OH cost per unit answers to 2 decimal places.) Deluxe Activity Handling materials Activity Rate Cost driver quantity incurred OH Allocated Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging
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