Exercise 17-18 (Algo) Computing overhead rates using activity-based costing LO P3 A manufacturer identified the following activities, costs, and activity drivers. Compute the activity rate for each activity using activity- based costing. (Round all "Activity rates" to 2 decimal places.) Activity Handling materials Inspecting product Processing orders Paying suppliers Insuring factory Budgeted Activity Usage 100,000 parts 1,500 inspections Budgeted Costs $ 695,000 942,000 203,000 245,000 5,000 invoices 328,000 40,000 square feet 700 orders Activity Budgeted Cost Budgeted Activity Usage) Activity Rate Handling materials Inspecting product Processing orders Paying suppliers Insuring factory Done Budgeted Activity Process Assembly Activity Machining Setups Budgeted Cost Activity Cost Driver Usage $ 310,200 22,000 Machine hours (MH) 7,200 Setups 60 $ 332,200 Finishing Inspecting $ 228,000 Inspections 800 Support Purchasing $ 130,000 Purchase orders 480 Additional production information concerning its two models follows. Units and Activities Units produced Machine hours Setups Inspections Purchase orders Per Unit Selling price per unit Direct materials cost per unit Direct labor cost per unit Model X Model z 1,800 3,600 2,000 5,200 20 40 500 300 320 160 Model X Model Z $ 405 $ 385 155 110 140 160