Question: Required: Compute activity rates for each activity and assign overhead costs to each product model using activity-based costing (ABC). What is the overhead cost per

Required: Compute activity rates for each activity and assign overhead costs to each product model using activity-based costing (ABC). What is the overhead cost per unit of each model? (Round activity rate answers to 2 decimal places.) Activity Rate Cost driver quantity incurred OH Allocated $ 6.25 per part Deluxe Activity Handling materials Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging 5 Activity Rate Cost driver quantity incurred OH Allocated Basic Activity Handing materials Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging 0 0 0 0 Xie Company identified the following activities, costs, and activity drivers for 2017. The company manufactures two types of go-karts: Deluxe and Basic Activity Handling materials Inspecting product Processing purchase orders Paying suppliers Insuring the factory Designing packaging 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 40,000 square feet 2 models Assume that the following information is available for the company's two products for the first quarter of 2017. Deluxe Model Basie Model Production volume 10,000 units 30,000 units Parts required 20,000 parts 30,000 parts Batehes made 250 batehes 100 batches Purchase orders 50 orders 20 orders Invoices 50 invoices 10 invoices Space occupied 10,000 sq. ft. 7,000 sq.ft Models 1 model 1 model
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