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Xio Company identified the following activities, costs, and activity drivers for this year. The company manufactures two types of go- karts: Deluxe and Basic Activity
Xio 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 $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 40,000 square feet Designing packaging 75,000 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 Rate Activity Handling material Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging Expected Costs 5 625,000 300,000 105,000 175,000 300,000 75,000 $ 2,180,000 Activity Driver 100.000 parts 1,500 batches 700 orders 500 invoices 40,000 square feet 2 models
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