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Oriole, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 200 pressure gauges were produced, and
Oriole, 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 $82,400 were estimated. An analysis of estimated overhead costs reveals the following activities. Activities Cost Drivers Total Cost 1. Materials handling Number of requisitions $32,960 2. Machine setups Number of setups 26,780 3. Quality inspections Number of inspections 22,660 $82,400 The cost driver volume for each product was as follows. Cost Drivers Instruments Gauges Total Number of requisitions 425 605 1,030 Number of setups 220 295 515 Number of inspections 235 280 515 Determine the overhead rate for each activity. Materials handling Machine setups Overhead Rate per requisition per setup Quality inspections per inspection
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