Xie Company identified the following activities, costs, and activity drivers for this year. The company manufactures two types of go-karts: Deluxe and Basic.ActivityHandling materialsInspecting productProcessing purchase ordersPaying suppliersInsuring the factoryDesigning packagingProduction volumeParts requiredBatches madePurchase ordersInvoicesSpace occupiedModelsAssume that the following information is available for the company's two products for the first quarter of this year.Deluxe Model10,000 units20,000 partsBasic Model30,000 units30,000 parts100 batches20 orders10 invoices7,000 sq. ft1 modelDeluxeActivityHandling materialsInspecting productProcessing ordersPaying suppliersInsuring factoryDesigning packagingExpected Costs$715,000990,000195,000265,000390,000165,000Required:Compute activity rates for each activity and assign overhead costs to each product model using activity-based costing (ABC). What isthe overhead cost per unit of each model? (Round activity rate and average OH cost per unit answers to 2 decimal places.)BasicActivityHandling materialsInspecting productProcessing ordersPaying suppliersInsuring factoryDesigning packaging250 batches50 orders50 invoices10,000 sq. ft.1 modelActivity RateActivity RateExpected Activity100,000 parts1,500 batches700 orders500 invoices40,000 square feet2models00000Cost driver quantity incurred OH AllocatedCost driver quantity incurred OH Allocated

Name: Xie Company identified the following activities, costs, and activity
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Description: Xie Company identified the following activities, costs, and activity drivers for this year. The company manufactures two types of go-karts: Deluxe and Basic.ActivityHandling materialsInspecting productProcessing purchase ordersPaying suppliersInsuri

Under activity based costing method, the cost is allocated to each activity based on its…

Business

Accounting

Xie Company identified the following activities, costs, and activity drivers for this year. 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 $715,000 990,000 195,000 Production volume Parts required Batches made Purchase orders Invoices Space occupied Models 265,000 390,000 165,000 Expected Activity 100,000 parts 1,500 batches 700 orders 500 invoices 40,000 square feet 2 models Assume that the following information is available for the company's two products for the first quarter of this year. Basic Model 30,000 units 30,000 parts Deluxe Model 10,000 units 20,000 parts 250 batches 50 orders 50 invoices 10,000 sq. ft. 1 model 100 batches 20 orders 10 invoices 7,000 sq. ft 1 model 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 and average OH cost per unit answers to 2 decimal places.)

Xie Company identified the following activities, costs, and activity drivers for this year. 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 $715,000 990,000 195,000 Production volume Parts required Batches made Purchase orders Invoices Space occupied Models 265,000 390,000 165,000 Expected Activity 100,000 parts 1,500 batches 700 orders 500 invoices 40,000 square feet 2 models Assume that the following information is available for the company's two products for the first quarter of this year. Basic Model 30,000 units 30,000 parts Deluxe Model 10,000 units 20,000 parts 250 batches 50 orders 50 invoices 10,000 sq. ft. 1 model 100 batches 20 orders 10 invoices 7,000 sq. ft 1 model 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 and average OH cost per unit answers to 2 decimal places.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Subject: Acounting