Question: Xie Company identified the following activities, costs, and activity drivers for this year. The company manufactures two types of go- karts: Deluxe and Basic.


Xie Company identified the following activities, costs, and activity drivers for this year. The company manufactures two types of go- karts: Deluxe and Basic. Activity Handling materials Expected Costs $660,000 935,000 Expected Activity 100,000 parts Inspecting product. 1,500 batches 700 orders Processing purchase orders 140,000 Paying suppliers 210,000 500 invoices 335,000 40,000 square feet Insuring the factory Designing packaging 110,000 2 models Assume that the following information is available for the company's two products for the first quarter of this year. Production volume Parts required Batches made Purchase orders Invoices Deluxe Model 10,000 units 20,000 parts 250 batches 50 orders 50 invoices 10,000 sq. ft. Basic Model 30,000 units 30,000 parts 100 batches Space occupied Models 20 orders 10 invoices 7,000 sq. ft 1 model 1 model 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 and average OH cost per unit answers to 2 decimal places.) Deluxe Activity Activity Rate Cost driver quantity incurred OH Allocated Handling materials Inspecting product Deluxe Activity Handling materials Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging Basic Activity Handling materials Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging Activity Rate Activity Rate Cost driver quantity incurred Cost driver quantity incurred OH Allocated OH Allocated
Step by Step Solution
3.54 Rating (168 Votes )
There are 3 Steps involved in it
Commputation of Activity Rate Xie Company ACTIVITY OVERHEAD COST ACTIVITY ACTIVITY ... View full answer
Get step-by-step solutions from verified subject matter experts
