Air United, Inc. manufactures two products: missile range instruments and space pressure gauges. During April,50range instruments and200pressure gauges were produced, and overhead costs of $85,890were estimated. An analysis of estimated overhead costs reveals the following activities.

Activities

Cost Drivers

Total Cost

1.Materials handlingNumber of requisitions$37,620

2.Machine setupsNumber of setups26,950

3.Quality inspectionsNumber of inspections21,320

$85,890

The cost driver volume for each product was as follows.

Cost Drivers

Instruments

Gauges

Total

Number of requisitions3856601,045Number of setups175315490Number of inspections275245520

(a)

Determine the overhead rate for each activity.

Overhead Rate

Materials handling$

enter a dollar amount per requisition

per requisitionMachine setups$

enter a dollar amount per setup

per setupQuality inspections$

enter a dollar amount per inspection

per inspection