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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 Number of requisitions 1. 2. 3. Materials handling Machine setups Quality inspections Number of setups Number of inspections $33,495 27,645 24,010 $85,150 The cost driver volume for each product was as follows. Cost Drivers Instruments Gauges Number of requisitions 385 630 Number of setups 185 300 Total 1,015 485 Number of inspections 260 230 490 Determine the overhead rate for each activity. Overhead Rate Materials handi per requisition Machine setups per setup Quality inspections $ per inspection Assign the manufacturing overhead costs for April to the two products using activity-based costing. (Round per unit answers to 2 decimal places, e.g. 12.25.) Instruments Gauges Total cost assigned A Overhead cost per Unit Click if you would like to Show Work for this question: Open Show Work
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