Question 16

Mordica Company identifies three activities in its manufacturing process: machine set-ups, machining, and inspections. Estimated annual overhead cost for each activity is $175,260, $382,200, and $102,300, respectively. The cost driver for each activity and the estimated annual usage are: number of set-ups 2,540, machine hours 27,300, and number of inspections 1,650. Calculate the overhead rate for each activity.

Machine set-ups		$	per set-up
Machining		$	per machine hour
Inspections		$	per inspection