Refer to the information in Exercise 17-1. Assume that the following information is available for the company’s two products for the first quarter of 2017.

Required Compute activity rates for each activity and assign overhead costs to each product model using activitybased costing (ABC). What is the overhead cost per unit of each model?

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.

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Production volume... Parts required.. Batches made.. Purchase orders Invoices Space occupied Models. Deluxe Model Basic Model 10,000 units 30,000 units 20,000 parts 30,000 parts 250 batches 100 batches 20 orders 50 orders 50 Invoices 10,000 square feet 1 model 10 Invoices 7,000 square feet 1 model