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Question 24 Fontillas Instrument, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, it produced 50 range instruments and 200 pressure
Question 24 Fontillas Instrument, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, it produced 50 range instruments and 200 pressure gauges and incurred estimated overhead costs of $94,690. An analysis of estimated overhead costs reveals the following activities: Activities Cost Drivers 1. Material handling Number of requisitions 2. Machine set-ups Number of set-ups 3. Quality inspections Number of inspections Total Cost $33,930 27,930 32,830 $94,690 The cost driver volume for each product was as follows: Cost Drivers Number of requisitions Number of set-ups Number of inspections Instruments Gauges 530 640 150 340 260 410 Total 1,170 490 670 Determine the overhead rate for each activity. The overhead rates are: Activity Cost Pool Rate Material handling $ per requisition Machine set-ups - $ per set-up Inspections per inspection Assign the manufacturing overhead costs for April to the two products using activity-based costing. Instruments Gauges Overhead cost per unit LINK TO TEXT LINK TO TEXT
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