Major Instrument, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 47 range instruments and 303 pressure gauges were produced, and overhead costs of $88,867 were estimated. An analysis of estimated overhead costs reveals the following activities.
Activity Cost Driver Total Cost
1. Materials handling Number of requisitions $41,680
2. Machine setups Number of setups 25,092
3. Quality inspections Number of inspections 22,095
$88,867
The cost driver volume for each product was as follows.
- Cost Driver Instruments Gauges Total
- Number of requisitions 418 624 1,042
- Number of setups 187 305 492
- Number of inspections 250 241 491
- Determine the overhead rate for each activity.
- Materials handling___ $
- Machine setup____ $
- Quality inspections ____
Assign the manufacturing overhead costs for April to the two products using activity-based costing. (Round answers to 0 decimal places, e.g. 250.)
Instruments per unit_____ $
Gauges per unit ______$