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Air United, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instr
The cost driver volume for each product was as follows. Total Instruments 415 Cost Drivers Number of requisitions Number of s
Determine the overhead rate for each activity. Overhead Rate Materials handling $ per requisition Machine setups $ per setup
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Answer #1
OH Rate = Estimated Total Cost / no. of cost driver
Cost Cost Driver No. of Cost driver OH Rate
Materials handling 35175 No. of Requisitions 1005 35 Per requistion
Machine Setup 29120 No. of Setup 520 56 Per Setup
Quality Inspection 23920 NO. of Inspections 520 46 Per Inspection
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