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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
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: De use and Basic Activity Handling materials Inspecting product Processing purchase orders Paying suppliers Insuring the factory Designing packaging Expected costs $688,220 955, 150,00 230,00 355, Expected Activity 188,80 parts 1,52 batches 780 orders see invoices 43,20 square foot 2 models Assume that the following information is available for the company's two products for the first quarter of this year Deluxe Model Basic Model Production value 18,80 units 38,80 units Parts required 20,00 parts 38,800 parts Batches made 25a batches 100 batches Purchase orders sa orders 22 anders Invoices sa invoices 1a invoices Space occupied | 10.ae sq. ft. 7,800 s. Models 1 model Required: Compute sctivity rates for esch activity and assign overhead costs to esch product model using sctivity-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 Coct driver quantity Inourred OH Allocated Deluxe Activity Handing materials Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging Bacio Activity Rate Coct driver quantity Inourred OH Allocated Activity Handing materials Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging 0 0 0 0 0
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