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Sunland, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 200 pressure gauges were produced, and overhead
Sunland, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 200 pressure gauges were produced, and overhead costs of $86,175 were estimated. An analysis of estimated overhead costs reveals the following activities. Activities Cost Drivers Total Cost 1. Materials handling Number of requisitions $36,540 2. Machine setups Number of setups 26,010 3. Quality inspections Number of inspections 23,625 $86,175 The cost driver volume for each product was as follows. Cost Drivers Instruments Gauges Total Number of requisitions 415 600 1,015 Number of setups 225 285 510 Number of inspections 270 255 525 (a) Determine the overhead rate for each activity. Overhead Rate Materials handling $ per requisition Machine setups $ per setup Quality inspections $ per inspection e Textbook and Media Save for Later Attempts: 0 of 2 used Submit
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