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Exercise 4-9 a-b (Video) Air United, I $84,620 were estimated. An analysis of estimated overhead costs reveals the following activities Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 200 pressure pauges were produced, and overhead costs of Activities Cost Drivers Total Cost . Materials handling 2. Machine setups 3. Quality inspections Number of requisitions Number of setups Number of inspections $32,640 29,100 22,880 $84,620 The cost driver volume for each product was as foliows. Instruments Gauges Total 610 1,020 275 485 245 520 Cost Drivers Number of requisitions Number of setups Number of inspections 410 210 275 Determine the overhead rate for each activity Overhead Rate Materiais handling Machine setups Quality inspectionss per setup per inspection
Number of inspections 275 245 520 Determine the overhead rate for each activity. Overhead Rate Materials handling per requisition per setup per inspection s Machine setups s Quality inspections VIDEO: SIMILAR EXERCİSE 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 Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT LINK TO TEXT
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Answers are highlighted in yellow: Solution: a) Activi Total Cost Total Activity Rate (Total cost/Total Activity) Materials handling 32,640 Machine Setups 29,100 Quality Inspecting S 22,880 1020 $ 485 520 $ 32 lper requistion 60 per setup 44 per inspection b) Machine Setups Quality Inspecting Total Cost Assigned Unit produced Overhead Cost Per Unit Instruments Gauges Materials handling (Respective activity x rate)e.g.(410*32) 13,120 $ 19,520 $12,600 $ 16,500 $12,100 $ 10,780 $ 37,820 46,800 200 $ 756.40 234.00 50 (Cost assigned /Units)

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