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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 Expected Activity

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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 Expected Activity Costs Handling materials $625,888 Inspecting product 900,000 Processing purchase orders 105,000 Paying suppliers 175,000 Insuring the factory 300,800 Designing packaging 75,800 Expected Activity 100,000 parts 1,500 batches 700 orders 500 invoices square 40,008 feet 2 models Assume that the following information is available for the company's two products for the first quarter of this year Deluxe Model Basic Model Production 10,000 units 30,000 units volume Parts required 20,000 parts 30, cee parts Batches made 250 batches 100 batches Purchase orders 50 orders 20 orders Invoices 50 invoices 10 invoices Space occupied 10,000 sq. ft. 7,000 sq. ft Models 1 model 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 0 0 0 0 0

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