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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 gauges and incurred estimated overhead costs of $94,220. An analysis of estimated overhead costs reveals the following activities: Activities 1. Material handling 2. Machine set-ups 3. Quality inspections Cost Drivers Number of requisitions Number of set-ups Number of inspections Total Cost $34,980 28,420 30,820 $94,220 The cost driver volume for each product was as follows: Total Cost Drivers Number of requisitions Number of set-ups Number of inspections Instruments Gauges 400 660 180 310 1,060 490 270 400 670 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 LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR EXERCISE 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 VIDEO: SIMILAR EXERCISE