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Air United, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 49 range instruments and 296 pressure gauges were produced, and
Air United, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 49 range instruments and 296 pressure gauges were produced, and overhead costs of $81,470 were estimated. An analysis of estimated overhead costs reveals the following activities.
Exercise 17-9 Air United, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 49 range instruments and 296 pressure gauges were produced, and overhead costs of $81,470 were estimated. An analysis of estimated overhead costs reveals the following activities. Activities Total Cost 1. 2. 3. Materials handling Machine setups Quality inspections Cost Drivers Number of requisitions Number of setups Number of inspections $31,350 28,280 21,840 $81,470 The cost driver volume for each product was as follows Cost Drivers Number of requisitions Number of setups Number of inspections Instruments 420 185 255 Gauges 625 320 265 Total 1,045 505 520 Determine the overhead rate for each activity. Overhead Rate Materials handling Machine setups Quality inspections 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 Click if you would like to Show Work for this question: Open Show WorkStep by Step Solution
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