Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
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 Costa Expected Activity Handling materials $625,000 100,000 parts Inspecting product 900,000 1,500 batches Processing purchase orders 105,000 700 orders Paying suppliers 175,000 500 invoices Insuring the factory 300,000 Designing packaging 40,000 square feet 75,000 2 models Assume that the following information is available for the company's two products for the first quarter of this year. Deluxe Model Danie Model Production volume 10,000 units 30,000 units Parts required 20,000 parte 30,000 parts Datehes made 250 batehes 100 batches Purchase orders 50 orders 20 orders Invoices 50 invoices 10 invoices Space occupied 10,000. Et 7.000 Models 1 model 1 model 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 and average OH cost per unit answers to 2 decimal places.) Cost driver quantity incurred Deluxe Activity Handing materials Inspecting product Processing orders Paying suppliers Insuring factory OH Allocated Activity Rate per part per batch per order per invoice pers Required: Compute activity rates for each activity and assign overhead costs to each product model using activity-based costing (ABC the overhead cost per unit of each model? (Round activity rate and average OH cost per unit answers to 2 decimal places Cost driver quantity incurred OH Allocated Deluxe Activity Handling materials Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging Activity Rate per part per batch per order per invoice per sq.ft per model Activity Rate Cost driver quantity incurred OH Allocated Basic Activity Handling materials Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

An Audit Is An Audit Is An Audit

Authors: Marina Peters

1st Edition

B08B37VNZ6, 979-8652328412

More Books

Students also viewed these Accounting questions