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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

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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 Handling materials Inspecting product Processing purchase orders Paying suppliers Insuring the factory Designing packaging Expected Costs $ 715,000 990,000 195,000 265,000 390,000 165,000 Expected Activity 100,000 parts 1,580 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.) Activity Rate Activity Handling material Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging Expected Costs 5 715,000 990,000 195,000 265,000 390,000 165,000 $ 2,720,000 Activity Driver 100,000 parts 1,500 batches 700 orders 500 invoices 40,000 square feet 2 models

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