Exercise 17-5 Assigning costs using ABC LO P3 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 Expected Costs Expected Activity Handling materials 5685,000 100,000 parts Inspeeting product 960,000 1,500 batches Processing purchase orders 165,000 700 orders Paying suppliers 235.000 500 invoices Insuring the factory 360,000 40,000 square feet Designing packaging 135.000 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 Dance Model 30,000 units 30,000 parts 100 batehes 20 orders 10 invoices 7,000 sq.ft 1 model Required: Compute activity rates for each activity and assign overhead costs to each product model using activity based costing (ABC). What is the overhead cost per unit of each model? (Round activity rate and average OH cost per unit answers to 2 decimal places.) Activity Rate Cost driver quantity incurred OH Allocated Deluxe Activity Handling materials Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging Basic Activity Rate Cost driver quantity incurred OH Allocated Activity Handling materials Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging ooo 0 0