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Chan Company identified the following activities, costs, and activity drivers for 2015. The company manufactures two types of go-karts: fast and standard. Chan Company identified
Chan Company identified the following activities, costs, and activity drivers for 2015. The company manufactures two types of go-karts: fast and standard.
Chan Company identified the following activities, costs, and activity drivers for 2015. The company manufactures two types of go-karts: fast and standard. Activity Handlina materials Inspecting product Processing purchase orders Paying suppliers Insuring the factory Designing packaging Expected Cost Expected Activity $ 625,000 100,000 parts 900,000 105,000 175,000 300,000 75,000 1,500 batches 700 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 Expected Costs Expected Activity Activity Rate Handling materials Inspecting product Processing purchase orders Paying suppliers Insuring factory Designing packaging 625,000100,000 parts 900,000 105,000 175,000 300,000 40,000 square feet 1,500 batches 700 orders 500 invoices 75,000 2 models $2,180,000Step by Step Solution
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