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Exercise 4-9 a-b (Video) Air United, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 200 pressure
Exercise 4-9 a-b (Video) 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 2. Machine setups 3. Quality inspections Number of requisitions Number of setups Number of inspections $37,800 28,320 21,850 $87,970 The cost driver volume for each product was as follows Cost Drivers Instruments Gauges Total Number of requisitions Number of setups Number of inspections 405 190 230 645 1,050 290 245 480 475 Determine the overhead rate for each activity Overhead Rate Materials handling Machine setups Quality inspections per requisition per setup LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR EXERCISE Assign the manufacturing overhead costs for April to the two products using activity-based costing. (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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