Question

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 $83,160 were estimated. An analysis of estimated overhead costs reveals the following activities. Activities Cost Drivers Total Cost 1. Materials handling Number of requisitions $35,020 2. Machine setups Number of setups 27,560 3. Quality inspections Number of inspections 20,580 $83,160 The cost driver volume for each product was as follows. Cost Drivers Instruments Gauges Total Number of requisitions 405 625 1,030 Number of setups 180 340 520 Number of inspections 240 250 490 Determine the overhead rate for each activity. Overhead Rate Materials handling $ per requisition Machine setups $ per setup Quality inspections $ per inspection LINK TO TEXT LINK TO TEXT 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 $ $

Answer 1

Andaser Calculation ot overhead Ral fr cach Activitg Total ot over head Yate $34 Ct dviver Activity Hala rialy handling35,020 o30 $53 27,560 520 Mahine Sutues 490 Quality inspectiong 20,580 over huad vat for matviol handlivg3 Hachine setups 453 aualiy indpeutan Calaulalion of tota Hauufacturing Cat A1gn to anst rumen 42 and gaugy Inttrumenty Colt Xdriver Gauges ovrhad Yalt aver haad Yalt Cast driver Total Total Activy $21,250 $13 34 x405 Malaviol handling$34 Machine Setups53 CAality inspections2 625 180 х 10.500 $lopso$42 33390 X x 240 calenlate avetheod Cat per uni for inftrumen and Gange oerheaf Cat pt unit fr tnytrumen- Total nanfaularng averheafcy units Preducad $33,390 13 50 667.8 aufacaring overbeaf Ct mi produce overheod ct per unit hr hauges T $49,70 -2485