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Answer the following question Xie Company identied the following activities, costs, and activity drivers for this year. The company manufactures two types of go-karts: Deluxe

Answer the following question

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Xie Company identied the following activities, costs, and activity drivers for this year. The company manufactures two types of go-karts: Deluxe and Basic. Activity Expected Costs Expected Activity Handling materials $ 725,000 100,000 parts Inspecting product 1 , 000 , 00 0 1 , 500 batches Processing purchase orders 205 , 00 0 700 orders Paying suppliers 275 , 00 0 500 invoices Insuring the factory 400,000 40,000 square feet Designing packaging 175 , 00 0 2 models Assume that the following information is available for the company's two products for the first quarter of this year. Deluxe Model Basic Model Production volume 10 , 000 units 30 , 000 units Parts required 20 , 000 parts 30 , 000 parts Batches made 250 hatches 100 batches Purchase orders 50 orders 20 orders Invoices 50 invoices 10 invoices Space occupied 10,000 Sq. ft. 7,000 Sq. ft Models 1 model 1 model Required: Compute activity rates for each activity and assign overhead costs to each product model using activitybased costing (ABC). What is the overhead cost per unit of each model? (Round activity rate and average OH cost per unit answers to 2 decimal places.) Deluxe Activity Activity Rate Cost driver quantity incurred OH Allocated Handling materials Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging Basic Activity Activity Rate Cost driver quantity incurred OH Allocated Handling materials Inspecting product 0 Processing orders 0 Paying suppliers 0 Insuring factory 0 Designing packaging 0

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