Chan Company identified the following activities, costs, and activity drivers for this year. The company manufactures two types of go- karts: fast and standard. Activity Handling materials Inspecting product Processing purchase orders Paying suppliers Insuring the factory Designing packaging Expected Costs $ 680,000 1,275,000 155,000 225,000 400,000 85,000 Activity Driver 200,000 parts 2,550 batches 1,240 orders 750 invoices 50,000 square feet 2 models 1. Compute a single plantwide overhead rate assuming that the company assigns overhead based on 150,000 budgeted direct labor hours. 2. In January of this year, the fast model required 2,000 direct labor hours and the standard model required 5,500 direct labor hours. Assign overhead costs to each model using the single plantwide overhead rate. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute a single plantwide overhead rate assuming that the company assigns overhead based on 150,000 budgeted direct labor hours. Estimated overhead costs $ 201,428.57 per direct labor hour $ 2,820,000 14 Estimated direct labor hours Complete this question by entering your answers in the tabs below. Required 1 Required 2 In January of this year, the fast model required 2,000 direct labor hours and the standard model required 5,500 direct labor hours. Assign overhead costs to each model using the single plantwide overhead rate. (Round OH rate to 2 decimal places.) Fast model Standard model Total DL Hours Plantwide OH Total Overhead required Rate Cost 2,000 $ 201,428.57 $ 402,857,140 5,500 $ 201,428.57 Chan Company identified the following activities, costs, and activity drivers for this year. The company manufactures two types of go- karts: fast and standard. Activity Handling materials Inspecting product Processing purchase orders Paying suppliers Insuring the factory Designing packaging Expected Costs $624,000 791,000 115,000 185,000 320,000 77,000 Activity Driver 120,000 parts 1,400 batches 920 orders 500 invoices 40,000 square feet 2 models Compute the overhead activity rate for each activity, assuming the company uses activity-based costing. (Round your answers to 2 decimal places.) Activity Rate Expected Costs $ 624,000 Activity Driver 120,000 parts per part per batch Activity Handling materials Inspecting product Processing purchase orders Paying suppliers Insuring the factory Designing packaging 791,000 115,000 1,400 batches 920 orders per order 185,000 per invoice 320,000 77,000 500 invoices 40,000 square feet 2 models per sq. ft. per model $ 2,112,000
