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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. Seved Help
Xie Company identified the following activities, costs, and activity drivers for this year. The company manufactures two types of go-karts: Deluxe and Basic.
Seved Help Save & Exit Sub Check my work 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 $705,000 980,000 185,000 255,000 380,000 155,000 Expected Activity 100,000 parts 1,500 batches 700 orders es 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. Deluxe Model Production volume 16,000 units Parts required 20,000 parts Batches made 250 batches Durch Arar Care Basic Model 30,000 units 30,000 parts 100 batches horror VC Vrtus Tuto Putting your Pas Lain-Talotations htts://my vocied. Otherboom HW 6 saved Help Save & Exit Submit Check my work 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 volume 10,000 units 30,000 units Parts required 20,000 parts 30,000 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.) Cost driver quantity incurred OH Allocated Activity Rate 7.05 per part $ Activity Handling materials Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging Activity Rate Cost driver quantity incurred OH Allocated Basic Activity Handing materials Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging OOOO Step by Step Solution
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