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Xle Company identified the following activitues, costs, and activity drivers for this year. The company manufactures two types of go karts: Deluxe and Basic. Xie
Xle Company identified the following activitues, 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 Inspecting product Processing purchase orders Paying suppliers Insuring the factory Designing packaging Expected Costs $645,000 920,000 125,000 195,000 32e, eee 95, eee Expected Activity 100,000 parts 1,500 batches 700 orders 500 invoices 40,000 square feet 2 models Assume that the following information is available for the company's two products for the first quarter of this year Production volume Parts required Batches made Purchase orders Invoices Space occupied Models Deluxe Model 10,000 units 2e,eee parts 25e batches 50 orders 5e invoices le, eee sq. ft. 1 model Basic Model 30,000 units 30,000 parts lee batches 20 orders 18 invoices 7,800 sq.ft 1 model 25 points 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) Slipped Activity Rate Cost driver quantity incurred OH Allocated eBook Activity Handling materials Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging Print References OH Allocated Activity Rate Cost driver quantity incurred 0 0 Basio Activity Handling materials Inspecting product Processing orders Paying supplies Insung factory Designing packaging 0 0 0 Step by Step Solution
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