Question

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 Required: Compute the activity rate for each activity, assuming the company uses activity-based costing. (Round activity rate answers to 2 decimal places.) Activity Rate Activity Handling material Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging Expected Costs $ 625,000 900,000 105,000 175,000 300,000 75,000 $ 2,180,000 Activity Driver 100,000 parts 1,500 batches 700 orders 500 invoices 40,000 square feet 2 models

Answer 1

the activity rate of

Green Total poll of Expected costs = $2180000 Solecion: Actility Based Costing Cost fool total Cost driver as parts = $2180000 = $21.8 b] batches = $2180000 = $1453.33 SUD Jordess = $2180000 Too - $3114.29 d Inuices - $ 2180000 a $ A360. e Squesteet - $2180000 .. = 40000 fl models - $2180000 = $1090000 Arrowess - Activity Rate a parts = $21.8 ] Orders unes - $A360 67 batches - $ 1453.33 e Squarefeet = & SAS a orders - $3114.29 t Models = $1090000

1. Parts =$21.8

2. Batches =$1453.33

3. Orders = $3114.29

4. Invoices =$4360

5. Squarefeet =$545

6. Models =$1090000