Business, 13.03.2020 05:49 pettismayersjoy3le8

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 $87,830 were estimated. An analysis of estimated overhead costs reveals the following activities.

Activities Cost Drivers Total Cost
1. Materials handling Number of requisitions $35,360
2. Machine setups Number of setups 27,270
3. Quality inspections Number of inspections 25,200
. $87,830
The cost driver volume for each product was as follows.

Cost Drivers Instruments Gauges Total
Number of requisitions 380 660 1,040
Number of setups 220 285 505
Number of inspections 260 265 525

Determine the overhead rate for each activity.

Overhead Rate
Materials handling $enter
Machine setups $enter
Quality inspections $enter

Answers: 1

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Air United, Inc. manufactures two products: missile range instruments and space pressure gauges. Dur...

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