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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 $85,890 were estimated. An analysis of estimated overhead costs reveals the following activities. Activities Cost Drivers Total Cost 1. Materials handling Number of requisitions $37,620 2. Machine setups Number of setups 26,950 3. Quality inspections Number of inspections 21,320 $85,890 The cost driver volume for each product was as follows. Cost Drivers Instruments Gauges Total Number of requisitions Number of setups 385 175 275 660 315 245 1,045 490 520 Number of inspections Determine the overhead rate for each activity. Overhead Rate Materials handling $ per requisition Machine setups per setup Quality inspections $ per inspection e Textbook and Media 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 Overhead cost per Unit $ e Textbook and Media
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