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Crane Instrument, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, it produced 50 range instruments and 250 pressure gauges and
Crane Instrument, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, it produced 50 range instruments and 250 pressure gauges and incurred estimated overhead costs of $94,850. An analysis of estimated overhead costs reveals the following activities: Total Cost 1. $33,350 Activities Material handling Machine set-ups Quality inspections Cost Drivers Number of requisitions Number of set-ups Number of inspections 2. 28.600 3. 32.900 $94,850 The cost driver volume for each product was as follows Instruments Gauges Total Cost Drivers Number of requisitions 510 640 1,150 Number of set-ups 200 350 550 Number of inspections 250 450 700 Determine the overhead rate for each activity. The overhead rates are: Cost Pool Rate Material handling $ per requisition Machine set-ups $ per set-up Inspections $ per inspection e Textbook and Media Question Part Score
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