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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 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 500 invoices 40,000 square feet 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.) Expected Costs Activity Driver Activity Rate $ 705,000 100,000 parts 980,000 1,500 batches Activity Handling material Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging 185,000 700 orders 255,000 500 invoices 380,000 40,000 square feet 2 models 155,000 2,660,000 $
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