Ivanhoe, 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 setups	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	Total
Number of requisitions	405	645	1,050
Number of setups	190	290	480
Number of inspections	230	245	475

a) Determine the overhead rate for each activity. Materials handling, Machine setups, Quality inspections.

b) Assign the manufacturing overhead costs for April to the two products using activity-based costing.