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Xie Company identified the following activities, costs, and activity drivers for this year. The company manufactures two types of go- karts: Deluxe and Basic. Expected
Xie Company identified the following activities, costs, and activity drivers for this year. The company manufactures two types of go- karts: Deluxe and Basic. Expected Activity 100,000 parts 1,500 batches Activity Handling materials Inspecting product Processing purchase orders Paying suppliers Insuring the factory Designing packaging Expected Costs $ 725,000 1,000,000 205,000 275,000 400,000 175,000 700 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 $ 125,00 Activity Handling material Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging Expected Costs 725,000 1,000,000 205,000 275,000 400,000 175,000 $ 2,780,000 Activity Driver 100,000 parts 1,500 batches 700 orders 500 invoices 40,000 square feet 2 models
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