Apple Inc. manufactures two products: iPhones and iPads. During September, 5,000 iPhones and 3,000 iPads were produced, and overhead costs of $945,000 were estimated. An analysis of estimated overhead costs reveals the following activities. Activities 1. Materials handling 2. Machine setups 3. Quality inspections Cost Drivers Number of requisitions Number of setups Number of inspections Total Cost $ 400,000 215.000 330.000 $ 945,000 The cost driver volume for each product was as follows. Cost Drivers Number of requisitions Number of setups Number of inspections iPhones 4,000 2.000 2.000 iPads 6,000 3,000 4,000 Total 10,000 5.000 6.000 Instructions: (a) Determine the overhead rate for each activity. (b) Assign the manufacturing overhead costs for September to the two products using activity-based costing. a) The overhead rates are: Estimated Overhead Expected Use of Cost Driver/ Activity Activity-Based OH Rates Activity Cost Pools Materials Handling Machine Setups Quality inspections b) The assignment of overhead costs to products is as follows: iPhones Number iPads Number Cost Assigned Cost Cost Driver Requisitions Machine setups Inspections Total costs assigned