Xie Company identified the following activities, costs, and activity drivers for 2015. The company manufactures two types of go-karts: Deluxe and Basic.

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 answers to 2 decimal places.)

Activity Expected Costs Expected Activity 625,000 100,000 parts Handling materials Inspecting product 900,000 1,500 batches 105,000 Processing purchase orders 700 orders 175,000 500 invoices Paying suppliers 40,000 square feet 300,000 Insuring the factory 75,000 2 models Designing packaging Assume that the following information is available for the company's two products for the first quarter of 2015 Basic Model Deluxe Model 10,000 units 30,000 units Production volume 20,000 parts 30,000 parts Parts required Batches made 250 batches 100 batches Purchase orders 50 orders 20 orders 50 invoices 10 invoices Invoices Space occupied 10,000 sq. ft. 7,000 sq. ft Models 1 mode 1 model