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a. Determine the overhead rate for each activity. b. Assign the manufacturing overhead costs for April to the two products using activity-based costing. c. Write
a. Determine the overhead rate for each activity. b. Assign the manufacturing overhead costs for April to the two products using activity-based costing. c. Write a memorandum to the president of Air United explaining the benefits of activity-based costing.
E4.9 (LO 2,3), AP Writing Air United, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 300 pressure gauges were produced, and overhead costs of $94,500 were estimated. An analysis of estimated overhead costs reveals the following activities. Compute overhead rates and assign overhead using ABC. Excel The cost driver volume for each product was as follows. Instructions a. Determine the overhead rate for each activity. b. Assign the manufacturing overhead costs for April to the two products using activity-based costing. c. Write a memorandum to the president of Air United explaining the benefits of activity-based costingStep by Step Solution
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