Xie Company identified the following activities, costs, and activity drivers for 2017. The company manufactures two types of go-karts: deluxe and basic.

Required 

1. Compute a single plantwide overhead rate, assuming that the company assigns overhead based on 125,000 budgeted direct labor hours.
2. In January 2017, the deluxe model required 2,500 direct labor hours and the basic model required 6,000 direct labor hours. Assign overhead costs to each model using the single plantwide overhead rate.

Refer to the information in Exercise 17-1. Compute the activity rate for each activity, assuming the company uses activity-based costing.

Data From Exercise 17-1

Xie Company identified the following activities, costs, and activity drivers for 2017. The company manufactures
two types of go-karts: deluxe and basic.

Transcribed Image Text:

Activity Handling materials. Inspecting product. Processing purchase orders Expected Costs $625,000 900,000 Expected Activity 100,000 parts 1,500 batches Paying suppliers...... 105,000 175,000 700 orders 500 Invoices Insuring the factory. 300,000 40,000 square feet Designing packaging.. 75,000 2 models