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 Costs Expected Activity Handling materials $ "650,000" 100,000 parts Inspecting product 925,000 1,500 batches Processing purchase orders 130,000 700 orders Paying suppliers 200,000 500 invoices Insuring the factory 325,000 40,000 square feet Designing packaging 100,000 2 models

Required: Compute the activity rate for each activity, assuming the company uses activity-based costing.

Explanation:

The computation of the activity rate for each activity is shown below:  

As we know that

Activity Rate = Expected rate ÷ Activity Driver

For Handling material = $650,000 ÷ 100,000 = $6.50 per part

For Inspecting product = $925,000 ÷ 1,500 parts = $616.67 per batch

For Processing purchase orders = $130,000 ÷ 700 = $185.72 per orders

Paying supplies = $200,000 ÷ 500 = 400 per invoices

Insuring the factory = $325,000 ÷ $40,000 = $8.125 per square foot

Designing packaging = $100,000 ÷ 2 models = 50,000 per models

answer: i'd say the answer is d because the information system is the human already doing the activity.

you get one warning and if you do something to violate the guidelines of after that you get kicked off.

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