Xie Company identified the following activities, costs, and activity drivers for 2015. The company manufactures two types of go-karts: Deluxe and Basic.

Required
1. Compute a single plant wide overhead rate assuming that the company assigns overhead based on 125,000 budgeted direct labor hours.
2. In January 2015 the Deluxe model required 2,500 direct labor hours, and the Standard model required 6,000 direct labor hours. Assign overhead costs to each model using the single plant wide overhead rate.

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Activity Expected CostsExpected Activity $625,000 900,000 05,000 175,000 300,000 75,000 100,000 parts 1,500 batches 700 orders 500 invoices 40,000 square feet 2 models Handling materials.. Processing purchase orders. . Paying suppliers Insuring the factory.... Designing packaging._ _ _ . .