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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 $710,000 985,000 190,000 260,000 385,000 160,000 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 decimal places.) Activity Rate Activity Handling material Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging Expected Costs 710,000 985,000 190,000 260,000 385,000 160,000 $ 2,690,000 Activity Driver 100,000 parts 1,500 batches 700 orders 500 invoices 40,000 square feet 2 models
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