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 5625,000 900,000 105,000 175,000 300,000 75,000 Expected Activity 100,000 parts 1,5ee batches 700 orders 500 invoices 40,000 square feet 2 models Assume that the following information is available for the company's two products for the first quarter of this year Production volume Parts required Batches made Purchase orders Invoices Space occupied Models Deluxe Model 10,000 units 20,000 parts 250 batches 50 orders 5e invoices 10,000 sq.ft 1 model Basic Model 30,000 units 30,000 parts 100 batches 20 orders 10 invoices 7,000 sq.ft 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.) 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.) Deluxe Activity Handling materials Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging Total Overhead assigned Production volume units) $ $ $ $ 5 $ Activity Rate 625 per part 60000 per batch 15000 per order 350.00 per invoice 7.50 per sq.it 37,500.00 per model Cost driver quantity incurred 20.000 parts 250 batches 50 orders 50 invoices 10,000 sq ft model OH Allocated $ 125,000 150,000 7,500 17,500 75,000 37 500 $ 412 500 Basic Activity Handling matenals Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging Total Overhead assigned Production volume units) $ $ $ $ $ Activity Rate 625 per part 60000 per batch 150.00 per order 350 00 per invoice 750 per set 37.500.00 per model Cost driver quantity incurred 30.000 parts 100 batches 20 orders 10 invoices 7,000 sqft 1 model OH Allocated $ 187,500 60,000 3,000 3,500 52 500 37,500 $ 314,000 $ 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.) Answer is not complete. Deluxe 0 OH Allocated $ 125.000 150 000 Activity Handling materials Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging Total Overhead assigned Production volume units) Activity Rate $ 625 per part $ 600.00 per batch IS 150.00 per order IS 350 00 per invoice s 750 persa $ 37 500.00 per model Cost driver quantity incurred 20 000 parts 250 batches 50 orders 50 invoices 10,000 1 model So OS 7,500 17.500 75,000 37 500 $ 412 500 Basic Activity Handing materials Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging Total Overhead assigned Production volume units) Activity Rate $ 625 per part $ 80000 per batch $ 150 00 per order s 350 00 per invoice $ 7.50 per sq ft $ 37 500 00 per model Cost driver quantity incurred 30,000 parts 100 batches 20 orders 10 invoices 7,000 1 model OH Allocated $ 187,500 60,000 3.000 3,500 52,500 37.500 $ 344,000
