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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.)

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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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