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Blue Spruce Tires manufactures tires for dune buggies and has two different products, nubby tires and smooth tires. The company produces 5,200 nubby tires

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Blue Spruce Tires manufactures tires for dune buggies and has two different products, nubby tires and smooth tires. The company produces 5,200 nubby tires and 10,200 smooth tires each year and incurs $187,040 of overhead costs. The following information is available: Activity Total Cost Cost Driver Materials handling $64,480 Number of requisitions Machine setups 60,480 Number of setups Quality inspections 62,080 Number of inspections For the nubby tires, the company has 420 requisitions, 220 setups, and 220 inspections. The smooth tires require 620 requisitions, 320 setups, and 420 inspections. Determine the overhead rate for each activity. Overhead Rate Materials handling $ per requisition Machine setups $ per setup Quality inspections $ per inspection

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