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Exercise 17-2 Computing overhead rates under ABC LO P3 Xle Company identified the following activities, costs, and activity drivers for 2017. The company manufactures two types of go-karts: Deluxe and Basi. s625,080 900,000 185,800 175,000 1,500 batches 700 orders 500 invoices 40,000 square feet 2 models 75,800 Re Paying suppliers 40
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Answer #1
A B A/B
Activity Expected Costs Activity Driver Activity Rate
Handing Material 625000 100000 Parts 6.25 Per Part
Inspecting Product 900000 1500 Batches 600.00 Per Batches
Processing PO 105000 700 Order 150.00 Per Order
Paying Supplies 175000 500 Invoice 350.00 Per Invoice
Insuring the Factory 300000 40000 Sq Feet 7.50 Per Sq Feet
Designing Packaging 75000 2 Model 37,500.00 Per Model
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