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

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

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Activity Expected C Expected A 625,000 100,000 parts Handling materials Inspecting product 900,000 1,500 batches 105,000 Processing purchase orders 700 orders 175,000 Paying suppliers 500 invoices Insuring the facto 300,000 40,000 square feet 75,000 2 models Designing packaging Required: 1. Compute a single plantwide overhead rate assuming that the company assigns overhead based on 125,000 budgeted direct labor hours

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