Air United, Inc. manufactures two products: missile range instruments and space pressure gauges. During April,...
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Air United, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 305 pressure gauges were produced, and overhead costs of $88,215 were estimated. An analysis of estimated overhead costs reveals the following activities.
Air United, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 305 pressure gauges were produced, and overhead costs of $88,215 were estimated. An analysis of estimated overhead costs reveals the following activities Activities Cost Drivers Total Cost 1. 2. 3. Materials handling Machine setups Quality inspectionsNumber of inspections Number of requisitions Number of setups $35,175 29,120 23,920 $88,215 The cost driver volume for each product was as follows Cost Drivers Instruments Gauges Total Number of requisitions Number of setups Number of inspections 415 190 255 590 330 265 1,005 520 520 Determine the overhead rate for each activity Overhead Rate Materials hang Machine setups Quality inspections s 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 Overhead cost per Unit s
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