Problem 4-20 points 20 minutes Tuttle Manufacturing Company manufactures two products: radiators and gas tanks. During June 200 radiators and 400 gas tanks were produced and overhead costs of $66.000 were incurred. The following information related to overhead costs was available: Activity Cost Driver Total Cost Materials handling Number of requisitions $28,000 Machine setups Number of setups 18.000 Quality inspections Number of inspections 20.000 $66.000 The cost driver volume for each product was as follows: Gas Tanks Total 800 Cost Driver Number of requisitions Number of setups Number of inspections Radiators 300 140 200 220 300 500 Instructions (a) Compute the overhead rate for each activity. (b) Assign the manufacturing overhead costs for June to the two products using activity based costing Total Cost / Total Driver Volume Overhead Rate (a) The overhead rates are: Activity Materials handling Machine setups Quality inspections (b) The assignment of the overhead costs per unit to products is as follows: Overhead Rate Radiators x Number = Cost Overhead Ratex Gas Tanks Number = Cost Cost Requisitions Setups Inspections (c) The assignment of the overhead costs per unit using traditional costing is as follows