Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i need help with this Xie Company identified the following activities, costs, and activity drivers for this year. The company manufactures two types of go-

i need help with thisimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

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 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 Modala Deluxe Model 10,000 units 20,000 parts 250 batches 50 orders 50 invoices 10,000 sq. ft. 1 madal Basic Model 30,000 units 30,000 parts 100 batches 20 orders 10 invoices 7,000 sq. ft 1 madal Purcnase oraers Invoices Space occupied Models Su oraers 50 invoices 10,000 sq. ft. 1 model 20 oraers 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.) Deluxe Activity Rate Cost driver quantity incurred OH Allocated Activity Handling materials Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging Handling materials Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging Basic Activity Rate Cost driver quantity incurred OH Allocated 0 Activity Handling materials Inspecting product Processing orders Paying suppliers Incuring factory 0 0 In 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Structured Edp Auditing

Authors: Gabriel Rothberg

1st Edition

0534979319, 978-0534979317

More Books

Students also viewed these Accounting questions