Business, 30.04.2021 18:30 laurynrobinson21

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 $90,810 were estimated. An analysis of estimated overhead costs reveals the following activities. Activities Cost Drivers Total Cost
1. Materials handling Number of requisitions $38,190
2. Machine setups Number of setups 29,580
3. Quality inspections Number of inspections 23,040
$90,810

The cost driver volume for each product was as follows.

Cost Drivers Instruments Gauges Total
Number of requisitions 425 580 1,005
Number of setups 175 335 510
Number of inspections 265 215 480

Required:
Determine the overhead rate for each activity.

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Air United, Inc. manufactures two products: missile range instruments and space pressure gauges. Dur...

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