Chan Company identified the following activities, costs, and activity drivers. The company manufactures two types of go- karts: Fast and Standard. Production volume is 10,000 units of the Fast model and 30,000 units of the Standard model.

Required
1. Compute a single plantwide overhead rate assuming that the company assigns overhead based on 100,000 budgeted direct labor hours.
2. Assign overhead costs to each model assuming the Fast model requires 25,000 direct labor hours and the Standard model requires 60,000 direct labor hours. What is the overhead cost per unit for eachmodel?

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Activity Expected Costs $625,000 900,000 Expected Activity Handling materials. Inspecting product... Processing purchase orders Paying suppliers Insuring the factoryr.. Designing packaging.... 100,000 parts in stock 1,500 batches 05,000 700 orders 175,000 300,000 375,000 500 invoices 40,000 square feet 10 models