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Air United, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 200 pressure gauges were produced, and
Air United, 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 $81,470 were estimated. An analysis of estimated overhead costs reveals the following activities. 1. Activities Materials handling Machine setups Quality inspections Cost Drivers Number of requisitions Number of setups Number of inspections 2. Total Cost $31,350 28,280 21,840 $81,470 3. The cost driver volume for each product was as follows. Instruments Gauges Total Cost Drivers Number of requisitions Number of setups Number of inspections 420 185 625 320 1,045 505 255 265 520 (a) Your answer is correct. Determine the overhead rate for each activity. Overhead Rate Materials handling $ 30 per requisition Machine setups $ 56 per setup Quality inspections $ 42 per inspection e Textbook and Media Attempts: 1 of 5 used (b) Your answer is partially correct. Assign the manufacturing overhead costs for April to the two products using activity-based costing. (Round per unit answers to 2 decimal places, e.g. 12.25.) Instruments Gauges Total cost assigned $ 33670 $ 47800 Overhead cost per Unit $ $ e Textbook and Media Save for Later Attempts: 4 of 5 used Submit
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