hoppi G Gmail New tab American CountCh 17 Homework -1 B https:// tion.com/flow/c

Question

hoppi G Gmail New tab American CountCh 17 Homework -1 B https:// tion.com/flow/connect.html 6 Saved e Company identified the following activities, costs, and activity drivers for 2017 The company manufactures two types of go-karts eluxe and Basic Expected Costs 625,000 980,000 Expected Activity 100,000 parts Activity Handling materials Inspecting product Processing purchase orders 15,880 Paying suppliers Insuring the factory Designing packaging ee orders 5e0 invoices 48,600 square feet 2 models 175,000 300,008 75,600 Required: Compute the activity rate for each activity. assuming the company uses activity based costing (Round activity rate answers to 2 decimal places.) 100,000 parts 625,000 900,000 105,000 175,000 300,000 5,000 S 2,180,000 | Harding masters 1,500 batches Inspecting product Processing orders Parying suppliers Insuring factory Designing packaging 500 nvoices 40,000 square leet 2 models ere to search F10

Explanation / Answer

Calculate activity rate :

Activity Expected cost activity driver Activity rate Handling material 625000 100000 parts 6.25 per parts Inspecting products 900000 1500 batches 600 per batch Processinng orders 105000 700 orders 150 per order Paying suppliers 175000 500 invoices 350 per invoice Insuring factory 300000 40000 Sq feet 7.5 per square feet Designing packagining 75000 2 models 37500 per model

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