Xie Company identified the following activities, costs, and activity drivers for 2017. The company manufactures two types of go-karts: Deluxe and Basic.  Activity Expected Costs Expected Activity Handling materials $ 625,000     100,000 parts Inspecting product   900,000     1,500 batches Processing purchase orders   105,000     700 orders Paying suppliers   175,000     500 invoices Insuring the factory   300,000     40,000 square feet Designing packaging   75,000     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.)

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 Expected Costs Expected Activity
Handling materials $ 625,000     100,000 parts
Inspecting product   900,000     1,500 batches
Processing purchase orders   105,000     700 orders
Paying suppliers   175,000     500 invoices
Insuring the factory   300,000     40,000 square feet
Designing packaging   75,000     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.)
 

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Activity Based Costing

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