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Exercise 17-4 Computing overhead rates under ABC LO P3 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 Expected Coats Expected Activity Handling materials $325,000 100,000 parte Inspecting product 1,000,000 1,500 batches Processing purchase orders 205,000 700 orders Paying suppliers 275,000 500 invoices Insuring the factory 400,000 40,000 square feet Designing packaging 175.000 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.) Activity Rate Activity Handling material Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging Expected Costa $ 725,000 1,000,000 205,000 275,000 400,000 175.000 $ 2,780,000 Activity Driver 100.000 parts 1,500 batches 700 orders 500 invoices 40,000 square foot 2 models per batch per invoice per model per order per part tes under ABC LO P3 osts, and activity drivers for this year. The company manufactures two types of go- Costa DO 00 00 00 00 00 Expected Activity 100,000 parts 1,500 batches 700 orders 500 invoices 40,000 square feet 2 models ning the company uses activity-based costing. (Round activity rate answers to 2 Activity Rate 000 000 200 Activity Driver 100,000 parts 1,500 batches 700 orders 500 invoices 40,000 square feet 2 models 000 200 per invoice per model per order per part per sq. ft. 000 000

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