Sheridan 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 $ 94,540. An analysis of estimated overhead costs reveals the following activities:

		Activities		Cost Drivers		Total Cost
1.		Material handling		Number of requisitions		$ 33,600
2.		Machine set-ups		Number of set-ups		28,000
3.		Quality inspections		Number of inspections		32,940
						$ 94,540

The cost driver volume for each product was as follows:

Cost Drivers		Instruments			Gauges			Total
Number of requisitions		420			630			1,050
Number of set-ups		180			320			500
Number of inspections		210			400			610

(a)

Determine the overhead rate for each activity. The overhead rates are:

Cost Pool		Rate
Material handling		$	per requisition
Machine set-ups		$	per set-up
Inspections		$	per inspection