Chan Company identified the following activities, costs, and activity drivers for 2017. The company manufactures two types of go-karts: fast and standard.

1. Compute a single plantwide overhead rate assuming that the company assigns overhead based on 100,000 budgeted direct labor hours.
2. In January 2017, the fast 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 plantwide overhead rate.

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Acilvity Handling materials Processing purchase orders Expected Costs $625,000 900,000 105,000 175,000 300,000 75,000 Expected Activity 100,000 parts 1,500 batches 700 orders 500 invoices Paying suppliers 0,000 square feet 2 models