New Tab C Glassworks inc Produce connecthtm Ch 17 Connect As

New Tab C Glassworks inc Produce connect.htm Ch 17 Connect Assignment Kle Company idencfied the follewing actvities, costs, and ectiviny drivers for 2017. The company manufactures two types of go-karts Deluse and Basic 15 Handiing materlals tnspecting product Processing purchase orders 1,580 batches 185,000 175,000 0 orders sa0 invedces 40,400 square feet 2 models suring te factary Deslgning sackaging 75,800 P Assume that the following information is avaiable for the company\'s two produets for the first quarter of 2017 Deluse Hode 250 patches ,000 se. Compute sctivity retes for eech acvity snd assign overheed costs to eech product model using ectvity-bssed costing (ABCI. What is the ove heed cos per unit of esch made Round acsivity race answers so 2 decimal places Activity Rate Co 10 6 ock

Solution

Firstly we need to calculate activity rates which is shown as follows:-

Calculation of Activity Rates (Amounts in $)

Calculation of overhead allocated to Deluxe (Amts in $)

Calculation of overhead allocated to Basic (Amts in $)

Activity	Expected Costs (A)	Expected Activity (B)	Activity Rate (A/B)
Handling Materials	625,000	100,000 parts	6.25 per part
Inspecting Product	900,000	1,500 batches	600 per batch
Processing Purchase Orders	105,000	700 orders	150 per order
Paying Suppliers	175,000	500 invoices	350 per invoice
Insuring the Factory	300,000	40,000 square feet	7.50 per sq ft
Designing Packaging	75,000	2 models	37,500 per model