Modine Manufacturing Company manufactures two products: radiators and gas tanks. During March, 200 radiators and 400 gas tanks were produced and overhead costs of $54,000 were incurred. The following information related to overhead costs was available:

Activity	Cost Driver	Total Cost
Materials handling	Number of requisitions	$20,000
Machine setup	Number of setups	18,000
Quality inspections	Number of inspections	16,000

The cost driver volume for each product was as follows:

Cost Driver	Radiators	Gas Tanks	Total
Number of requisitions	600	400	1,000
Number of setups	120	180	300
Number of inspections	190	210	400

Instructions

(a) Compute the overhead rate for each activity.

(b) Assign the manufacturing overhead costs for March to the two products using activity-based costing and show manufacturing overhead cost per unit for Radiators and Gas Tanks.