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Fork Saved Exercise 17-4 Computing overhead rates under ABC LO P3 Xie Company identified the following activities, costs, and activity drivers for this year. The

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Fork Saved Exercise 17-4 Computing overhead rates under 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 Handling materials Inspecting product Processing purchase orders Paying suppliers Insuring the factory Designing packaging Expected Costs $650,000 925,000 130,000 200,000 325,000 100,000 Expected Activity 100,000 parts 1,500 batches 700 orders 500 invoices 40,000 square feet 2 models Required: Compute the activity rate for each activity, assuming the company uses activity-based costing. (Round activity rate answers to 2 decimal places.) Activity Rate Activity Handling material Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging Expected Costs $ 650,000 925,000 130,000 200,000 325,000 100,000 $ 2,330,000 Activity Driver 100,000 parts 1,500 batches 700 orders 500 invoices 40,000 square feet 2 models work i Saved 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 Handling materials Inspecting product Processing purchase orders Paying suppliers Insuring the factory Designing packaging Expected Costs $710,000 985,000 190,000 260,000 385,000 160,000 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 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.) Delen Deluxe Activity Rate Cost driver quantity incurred OH Allocated Activity Handling materials Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging Activity Rate Cost driver quantity incurred OH Allocated 0 Basic Activity Handling materials Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging 0 0 0 0

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