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	$	640,000			100,000	parts
Inspecting product		915,000			1,500	batches
Processing purchase orders		120,000			700	orders
Paying suppliers		190,000			500	invoices
Insuring the factory		315,000			40,000	square feet
Designing packaging		90,000			2	models

Required: 1. Compute a single plantwide overhead rate for the year, assuming that the company assigns overhead based on 125,000 budgeted direct labor hours. 2. In January of this year, the Deluxe model required 2,500 direct labor hours and the basic model required 6,000 direct labor hours. Assign overhead costs to each model using the single plantwide overhead rate.

• Required 1
• Required 2

Compute a single plantwide overhead rate for the year, assuming that the company assigns overhead based on 125,000 budgeted direct labor hours.

Estimated overhead costs:		=
Estimated direct labor costs:

	Total DL hours required:	Plantwide OH rate:	Total overhead cost:
deluxe model:
Basic Model: