ch 17 exercise

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

Required: Compute the activity rate for each activity, assuming the company uses activity-based costing. (Round activity rate answers to 2 decimal places.)

Activity Handling materials Inspecting product Processing purchase orders Paying suppliers Insuring the factory Designing packaging Expected Costs $645,000 920,000 125,000 195,000 320,000 95,000 Expected Activity 100,000 parts 1,500 batches 700 orders 500 invoices 40,000 square feet 2 models Activity Expected Costs Activity Rate $ Activity Driver 100,000 parts 1,500 batches 700 orders Handling material Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging 645,000 920,000 125,000 195,000 320,000 95,000 2,300,000 500 invoices 40,000 square feet 2 models