RK - CH. 17-ACTIVITY BASED COSTING Question 5 Air United, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 49 range instruments and 296 pressure gauges were produced, and overhead costs of $86,550 were estimated. An analysis of estimated overhead costs reveals the following activities d- Activities Cost Drivers Total Cost 1. Materials handling 2. Machine setups 3. Quality inspections Number of requisitions Number of setups Number of inspections 36.225 29,925 20,400 $86,550 es m- The cost driver volume for each product was as follows. Total Cost Drivers Instruments Number of requisitions Number of setups Number of inspections 650 320 285 1,035 525 510 205 225