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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,
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 $87,830 were estimated. An analysis of estimated overhead costs reveals the following activities Activities Cost Drivers Total Cost 1 Materials handling Number of requisitions $35,360 2 Machine setups Number of setups 27.270 3 Quality inspections i Number of inspection 25,200 $87,8301 The cost driver volume for each product was as follows. Cost Drivers Number of requisitions Instruments Gauges Total 380 660 1,040 Number of setups 220 285 505 Number of inspections 260 265 525 Your answer is correct Determine the overhead rate for each activity Overhead Rate
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