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Check my work Xie Company identified the following activities, costs, and activity drivers for this year. The company manufactures two types of go- karts: Deluxe
Check my work Xie Company identified the following activities, costs, and activity drivers for this year. The company manufactures two types of go- karts: Deluxe and Basic. Activity Handling materials Inspecting product Processing purchase orders Paying suppliers Insuring the factory Designing packaging Expected Costs $625,000 900,000 105,000 175,000 300,000 75,000 Expected Activity 100,000 parts 1,500 batches 700 orders 500 invoices 40,000 square feet 2 models Assume that the following information is available for the company's two products for the first quarter of this year. Production volume Parts required Batches made Purchase orders Invoices Space occupied Models Deluxe Model 10,000 units 20,000 parts 250 batches 50 orders 50 invoices 10,000 sq. ft. 1 model Basic Model 30,000 units 30,000 parts 100 batches 20 orders 10 invoices 7,000 sq. ft 1 model Deluxe OH Allocated $ Cost driver quantity incurred 20,000 parts 250 batches $ Activity Rate 6.25 per part 600.00 per batch 150.00 per order 125,000 $ $ 50l orders Activity Handling materials Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging Total Overhead assigned Production volume(units) 150,000 7,500 17,500 75,000 $ 50l invoices 350.00 per invoice 7.50 per sq. ft. 37,500.00 per model $ $ 10,000 sq. ft. model 37,500 412,500 $ Basic Activity Rate Cost driver quantity incurred OH Allocated Activity Handling materials Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging
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