Bark manufacturing has three activities in its manufacturing process: machine setups, machining, and inspections. estimated annual overhead cost for each activity is $90,000, $162,500, and $28,000, respectively. the expected annual use in each department is 1,000 setups, 12,500 machine hours, and 875 inspections. compute the overhead rate for each activity. machine setups $ 90 per setup machining $ 13 per machine hour inspections $ 32 pe

Instructions are listed below

Explanation:

Giving the following information:

Bark Manufacturing has three activities in its manufacturing process:

Machine setups:

Estimated annual overhead cost= $90,000

The expected annual use is 1,000 setups.

Machining:

Estimated annual overhead cost= $162,500

The expected annual use is 12,500 machine hours.

Inspections:

The estimated annual overhead cost= $28,000

The expected annual use is 875 inspections.

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Machine setups= 90,000/1000= $90 per setup

Machining= 162,500/12,500= $13 per machine hour.

Inspections= 28,000/875= $32 per inspection

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