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Monty Tires manufactures tires for dune buggies and has two different products, nubby tires and smooth tires. The company produces 6 , 0 0 0
Monty Tires manufactures tires for dune buggies and has two different products, nubby tires and smooth tires. The company produces nubby tires and smooth tires each year and incurs $ of overhead costs. The following information is available:
tableActivityTotal Cost,Cost DriverMaterials handling,$Number of requisitionsMachine setups,Number of setupsQuality inspections,Number of inspections
For the nubby tires, the company has requisitions, setups, and inspections. The smooth tires require requisitions, setups, and inspections.
Determine the overhead rate for each activity.
Overhead Rate
Materials handling per requisition
Machine setups per setup
Quality inspections per inspection
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