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Will thumbs up for correct answers, Thank you! ABC Air United, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50
Will thumbs up for correct answers, Thank you!
ABC Air United, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 300 pressure gauges were produced, and overhead costs of S94,500 were estimated. An analysis of estimated overhcad costs reveals the following activities. Activitics Cost Drivers Total Cost 1. Materials handling 2. Machine setups 3. Quality inspections Number of requisitions Number of setups Number of inspections $40,000 21,500 33,000 $94,500 The cost driver volume for cach product was as follows. Cost Drivers Number of requisitions Number of setups Number of inspections 400 200 200 Gauges 600 300 400 Total 1,000 500 600 (a) Determine the overhead rate for cach activity (b) Assign the manufactuigoverhead costs for April to the two products using activity-based costing. and compute the overhead cost per unit. (c) Write a memorandum to the president of Air United cxplaining the benefits of activity-based costing. NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with aStep by Step Solution
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