Refer to the information in Exercise 4-1. Compute the activity rate for each activity, assuming the company uses activity-based costing.
In Exercise 4-1
Xie Company identified the following activities, costs, and activity drivers for 2015. The company manufactures two types of go-karts: Deluxe and Basic.
Activity............................ ...... Expected Costs.....................Expected Activity
Handling materials . . . . . . . . . . . . . . . . $625,000 .................... 100,000 parts
Inspecting product . . . . . . . . . . . . . . . . 900,000 ..................... 1,500 batches
Processing purchase orders . . . . . . . . . 105,000 .......................... 700 orders
Paying suppliers . . . . . . . . . . . . . . . . . . 175,000 ....................... 500 invoices
Insuring the factory . . . . . . . . . . . . . . . 300,000 ................ 40,000 square feet
Designing packaging . . . . . . . . . . . . . . . 75,000 ........................... 2 models