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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.
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 Expected Costs $700,000 Inspecting product 975,000 Processing purchase orders 180,000 Paying suppliers 250,000 Insuring the factory Designing packaging 375,000 150,000 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.) Activity Expected Costs Activity Driver Handling material 700,000 100,000 parts Inspecting product 975,000 1,500 batches Processing orders 180,000 700 orders Paying suppliers 250,000 500 invoices Insuring factory 375,000 40,000 square feet Designing packaging 150,000 2 models $ 2,630,000 Activity Rate
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