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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
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 $630,000 985, eee 118,eee 188,eee 385, eee 80,000 Expected Activity 100,000 parts 1,580 batches 700 orders 500 invoices 48,eee 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 volune Parts required Batches made Purchase orders Invoices Space occupied Models Deluxe Model 18,688 units 20,000 parts 250 batches 50 orders 50 invoices 18,eee sq. ft. 1 model Basic Model 38,eee units 30,eee parts 180 batches 20 orders 10 invoices 7,800 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.) Activity Rate Cost driver quantity incurred OH Allocated Deluxe Activity Handling materials Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging Activity Rate Cost driver quantity incurred OH Allocated Basic Activity Handling materials Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging OOOOO
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