Xie Company identified the following activities, costs, and activity drivers for 2015. The company manufactures two types of go-karts: Deluxe and Basic.

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.)

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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 Production volume Parts required Batches made Purchase orders Invoices Space occupied Models Assume that the following information is available for the company's two products for the first quarter of 2015. Deluxe Model 10,000 units 20,000 parts 250 batches 50 orders 50 invoices Expected Activity 100,000 parts 1,500 batches 700 orders 10,000 sq. ft. 1 model 500 invoices 40,000 square feet 2 models Basic Model 30,000 units 30,000 parts 100 batches 20 orders 10 invoices 7,000 sq. ft 1 model 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 Production volume Parts required Batches made Purchase orders Invoices Space occupied Models Assume that the following information is available for the company's two products for the first quarter of 2015. Deluxe Model 10,000 units 20,000 parts 250 batches 50 orders 50 invoices Expected Activity 100,000 parts 1,500 batches 700 orders 10,000 sq. ft. 1 model 500 invoices 40,000 square feet 2 models Basic Model 30,000 units 30,000 parts 100 batches 20 orders 10 invoices 7,000 sq. ft 1 model

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