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 $87,985 were estimated. An analysis of estimated overhead costs reveals the following activities.

Activities				Cost Drivers		Total Cost
1.		Materials handling		Number of requisitions		$37,925
2.		Machine setups		Number of setups		28,500
3.		Quality inspections		Number of inspections		21,560
						$87,985

The cost driver volume for each product was as follows.

Cost Drivers		Instruments		Gauges		Total
Number of requisitions		415		610		1,025
Number of setups		195		280		475
Number of inspections		250		240		490

(a)

Determine the overhead rate for each activity.

		Overhead Rate
Materials handling		$enter a dollar amount per requisition	per requisition
Machine setups		$enter a dollar amount per setup	per setup
Quality inspections		$enter a dollar amount per inspection	per inspection

PART 2

Determine the overhead rate for each activity

MATERIALS HANDLING: $

MACHINE SETUPS: $

QUALITY INSPECTIONS: $