Appendix H.2 ABC Sali Instrument loc manufactures two products missile range intruments and space pre gauges During January, 50 geinstruments and 300 pressure gauges were produced, and overhead couts of 81.000 were incumed. As analysis of overhead costs reveals the following activities Activity Cost Driver Total Cost 1. Materials handling Number of requisitions SO DOO 2. Machine setups Number of setups 27.000 3. Quality inspection Number of inspections 34000 The cost driver volume for each product was as follows Cost Driver Instruments Number of requisitions 400 Number of setup 150 Number of inspection 200 Gauges Total 600 300 450 10 400 600 Determine the overhead me for each activity Antip the manufacturing erverhead costs for January to the two products using activity based coming (a) The overhead rates are: Activity Total Cost Total Driver Volume Overhead Rate 35,495 1015 33 57 Materials handling Machine setups Quality inspections 27,645 485 24,010 490 49 (a) The overhead rates are: Activity Total Cost Total Driver Volume Overhead Rate 35,495 1015 33 57 Materials handling Machine setups Quality inspections 27,645 485 24,010 490 49 (b) The assignment of the overhead costs to products is as follows: Instruments Gauges Cost Numb Cost Cost Numb er Total Cost er 33,495 Requisitions ($30) Setups ($60) Inspections ($40) Total costs (a) Total units (b) Cost per unit (a) + (b) S173.3 3 S580