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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. Activity 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.
Activity | Expected Costs | Expected Activity | ||||
Handling materials | $ | 670,000 | 100,000 | parts | ||
Inspecting product | 945,000 | 1,500 | batches | |||
Processing purchase orders | 150,000 | 700 | orders | |||
Paying suppliers | 220,000 | 500 | invoices | |||
Insuring the factory | 345,000 | 40,000 | square feet | |||
Designing packaging | 120,000 | 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.)
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