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Exercise 17-3 Assigning costs using ABC LO P3 Xie Company identified the following activities, costs, and activity drivers fo
Activity Handling materials Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging Cost d
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Deluxe
Activity Activity Rate Cost driver quan. Inc. OH alloc.
Handling Material $ 625,000.00 100000 20000 $ 125,000.00
Inspecting products $ 900,000.00 1500 250 $ 150,000.00
Processing orders $ 105,000.00 700 50 $     7,500.00
Paying suppliers $ 175,000.00 500 50 $   17,500.00
Insuring factory $ 300,000.00 40000 10000 $   75,000.00
Designing packaging $   75,000.00 2 1 $   37,500.00
$ 412,500.00
Units 10000
Per unit $           41.25
Basic
Activity Activity Rate Cost driver quan. Inc. OH alloc.
Handling Material $ 625,000.00 100000 30000 $ 187,500.00
Inspecting products $ 900,000.00 1500 100 $   60,000.00
Processing orders $ 105,000.00 700 20 $     3,000.00
Paying suppliers $ 175,000.00 500 10 $     3,500.00
Insuring factory $ 300,000.00 40000 7000 $   52,500.00
Designing packaging $   75,000.00 2 1 $   37,500.00
$ 344,000.00
Units 30000
Per unit $           11.47
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