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Can I have step by step on this question? Fox Hunting Gear manufactures two products: camouflage jackets and camouflage hats. The company makes 50,000 jackets

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Fox Hunting Gear manufactures two products: camouflage jackets and camouflage hats. The company makes 50,000 jackets and 20,000 hats each year. Information for overhead costs and for the two products appears below.

Activity

Driver

Estimated Total

Overhead Cost

Jackets

Hats

Setups

# of setups

$ 200,000

500 setups

1,500 setups

Ordering parts

# of parts

300,000

60,000 parts

40,000 parts

Machining

# of machine hours

600,000

12,000 machine hrs.

6,000 machine hrs.

Inspections

# of inspections

400,000

10,000 inspections

40,000 inspections

Shipping

# of shipments

300,000

10,000 shipments

10,000 shipments

Total overhead

$1,800,000

Fox Hunting Gear uses activity-based costing. What is the rate per inspection that should be used to assign inspection cost to hats?

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