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Xie Company identified the following activities, costs, and activity drivers for 2017. The company manufactures two types of go-karts: Deluxe and Basic. Expected Costs $625,000
Xie Company identified the following activities, costs, and activity drivers for 2017. The company manufactures two types of go-karts: Deluxe and Basic. Expected Costs $625,000 900,000 Activity Handling materials Inspecting product Processing purchase orders Paying suppliers Insuring the factory Designing packaging Expected Activity 100,000 parts 1,500 batches 105,000 700 orders 175,000 500 invoices 300,000 40,000 square feet 75,000 2 models Assume that the following information is available for the company's two products for the first quarter of 2017. Basic Model 30,000 units 30,000 parts Deluxe Model 10,000 units 20,000 parts Production volume Parts required Batches made 250 batches 100 batches Purchase orders 50 orders 20 orders 50 invoices 10,000 sq. ft. 1 model 10 invoices 7,000 sq. ft 1 model Invoices Space occupied Models 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 answers to 2 decimal places.) Deluxe Cost driver quantity incurred OH Allocated Activity Handling materials Activity Rate Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging Basic Activity Cost driver quantity incurred OH Allocated Activity Rate Handling materials Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging
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