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Exercise 17-09 a-b Air United, Inc., manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 200 pressure gauges
Exercise 17-09 a-b Air United, Inc., manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 200 pressure gauges were produced, and overhead costs of $87,970 were estimated. An analysis of estimated overhead costs reveals the following activities. Activities Cost Drivers Total Cost 1. Materials handling Number of requisitions $37,800 2. Machine stups Number of setups 28,320 3. Quality Inspections Number of inspections 21,850 $87,970 The cost driver volume for each product was as follows. Cost Drivers Instruments Gauges Number of requisitions 405 545 Number of setups 190 290 Number of inspections 230 245 Total 1,050 480 475 Determine the overhead rate for each activity. Overhead Rate Materials handling per requisition Machine setups per setup Quality inspections per inspection $ Assign the manufacturing overhead costs for April to the two products using activity-based coating, (Round per unit answers to 2 decimal places, e.g. 12.25.) Instruments Gauges Total cost assigned Overhead cost per Unit
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