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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
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 $650,000 100,000 parts Inspecting product 925,000 1,500 batches Processing purchase orders 130,000 700 orders Paying suppliers 200,000 500 Invoices Insuring the factory 325,000 40,000 square feet Designing packaging 100,000 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 $ 650,000 925,000 130.000 200,000 325,000 100,000 $ 2,330,000 Activity Driver 100.000 parts 1,500 batches 700 orders 500 invoices 40,000 square feet 2 models
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