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Air United, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 300 space pressure gauges were produced.

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Air United, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 300 space pressure gauges were produced. Estimated overhead costs were as follows: Activities Cost Drivers OH Costs Materials Handling Number of requisitions $40,000 Machine Setups Number of setups 21,500 Quality Inspections Number of inspections 33,000 $94,500 2 3 The expected cost driver activity was as follows: 4 Missile Space 5 Range Pressure L6 Instruments Gauges Total 17 Number of requisitions 400 600 1,000 18 Number of setups 200 300 500 19 Number of inspections 200 400 600 20 1 w 1 Instructions 2 a. Compute the pre-determined overhead rate for each activity cost pool. 3 b. Compute the amount of overhead to be assigned to each product from each activity cost pool. st 5

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