Attentive Company manufactures two products: Full range instruments and Half range instruments. During August, 50 Full range and 300 Half range were produced with overheads cost of $94.500.

Cost drivers for each product

Activity Pool Cost Drivers Estimated Full Range Half range Total

Overhead

Materials handlings Number of requisitions $40,000. 400 600 1,000

Machine Setups Number of setups 27,500. 200 300 500

Quality inspections Number of inspections 27,000. 200 400 600

Required:

1. Determine the overhead rate for each activity.
2. Assign the manufacturing overhead costs for August to the two products using Activity Based Costing (ABC).