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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 Cost $ 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: 1. Compute a single plantwide overhead rate assuming that the company assigns overhead based on 125,000 budgeted direct labor hours. 2. In January 2015 the Deluxe model required 2,500 direct labor hours, and the Standard model required 6,000 direct labor hours. Assign overhead costs to each model using the single plantwide overhead rate. (Round "OH cost" answers to 2 decimal places.) Total DL Hours required Plantwide OH Rate Total Overhead Cost Deluxe model Basic model
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