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Xie Company identified the following activities, costs, and activity drivers for 2015. The company manufactures two types of go-karts: Deluxe and Basic. Activity Handling materials
Xie Company identified the following activities, costs, and activity drivers for 2015. 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 $ 625,000 900,000 105,000 175,000 300,000 75,000 Expected Activity 100,000 parts 1,500 batches 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.) Expected Costs Activity Rate $ Activity Handling materials Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging Activity Driver 100,000 parts 1,500 batches 625,000 900,000 105,000 700 orders 500 invoices 175,000 300,000 40,000 square feet 2 models 75,000 2,180,000 $
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