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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 Expected Costs Expected Activity Handling materials 5 625,000 100,000 parts Inspecting product 900,000 1,5e0 batches Processing purchase orders 105,000 700 orders Paying suppliers 175,000 500 invoices Insuring the factory 300,000 40,000 square feet Designing packaging 75,000 2 models D Required: Compute the activity rate for each activity, assuming the company uses activity based costing. (Round activity rate answers to 2 decimal places.) Activity Rate Activity Handling material Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging Expected Costs Activity Driver $ 625.000 100.000 parts 900.000 1.500 batches 105,000 700 orders 175.000 500 invoices 300.000 40,000 square feet 75,000 2 models 5 2.180,000
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