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. Ar analysis of estimated overhead costs reveals the following activities. Activities Cost Drivers Total Cost 1. Materials handling Number of requisitions 2. Machine setups 3. Quality inspections Number of inspections $40,000 21,500 33,000 $94,500 Number of setups The cost driver volume for each product was as follows. Cost Drivers Instruments Number of requisitions Number of setups Number of inspections 400 200 200 Gauges 600 300 400 Total 1,000 500 600 Instructions (a) Determine the overhead rate for each activity (b) Assign the manufacturing overhead costs for Apnil to the two products using actvitybased costing and compute the overhead cost per unit. (c) Write a memorandum to the president of Air United explaining the benetits of activity-based costing NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" (a) The overhead rates are: Expected Use +of Cost DriverActivity-Based Estimated Overhead Activity Value Value Value OH Rates Activity Cost Pools Materials Handling Machine Setups Quality inspections Value Value Value requisition setup inspection (b)The assignment of overhead costs to products is as follows Gauges Cost Assigned Instruments Cost Driver Number Value Value Cost Number Value Value Cost Requisitions Machine setups Inspections Total costs assigned Units produced OH cost per unit Expected Use of Drivers Value Value (c) Write a memorandum to the president of Air United explaining the benefits of activity-based costing