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Air United, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 200 pressure gauges were produced, and
Air United, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 200 pressure gauges were produced, and overhead costs of $85,150 were estimated. An analysis of estimated overhead costs reveals the following activities. Activities Cost Drivers Total Cost 1. Materials handling Number of requisitions $33,495 2. Machine setups Number of setups 27,645 3. Quality inspections Number of inspections 24,010 $85.150 The cost driver volume for each product was as follows. Cost Drivers Instruments Gauges Total Number of requisitions 385 630 1.015 Number of setups 185 300 485 Number of inspections 260 230 490 Determine the overhead rate for each activity. Materials handling tA Machine setups $ Quality inspections $ Overhead Rate per requisition per setup per inspection
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