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Chan Company identified the following activities, costs, and activity drivers for 2017. The company manufactures two types of go-karts: fast and standard. Activity Expected Costs
Chan Company identified the following activities, costs, and activity drivers for 2017. The company manufactures two types of go-karts: fast and standard.
Activity | Expected Costs | Expected Activity | ||
Handling materials | $ | 625,000 | 100,000 | parts |
Inspecting product | 900,000 | 1,500 | batches | |
Processing purchase orders | 105,000 | 700 | orders | |
Paying suppliers | 175,000 | 500 | invoices | |
Insuring the factory | 300,000 | 40,000 | square feet | |
Designing packaging | 75,000 | 2 | models | |
Compute the overhead activity rate for each activity, assuming the company uses activity-based costing. (Round your answers to 2 decimal places.)
ctivity Handling materials Inspecting product Processing purchase orders Paying suppliers Insuring factory Designing packaging Expected Costs Expected Activity Activity Rate $625,000 100,000 parts 900,0001,500 batches 105,000 175,000 300,00040,000 square feet 700orders 500 invoices 75,000 2 models $ 2,180,000
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