Solution-Determine the overhead rate for each activity

Determine the overhead rate for each activity

Reference no: EM131796480

AProblem

(Part Level Submission) Major Instrument, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 68 range instruments and 408 pressure gauges were produced, and overhead costs of $102,090 were estimated. An analysis of estimated overhead costs reveals the following activities.

Activities	Cost Drivers	Total Cost
1. Materials handling	Number of requisitions	$50,400
2. Machine setups	Number of setups	23,600
3. Quality inspections	Number of inspections	28,090
		$102,090

The cost driver volume for each product was as follows.

Cost Drivers	Instruments	Gauges	Total
Number of requisitions	480	570	1,050
Number of setups	150	250	400
Number of inspections	150	380	530

(a) Determine the overhead rate for each activity.

Reference no: EM131796480

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Determine the overhead rate for each activity

Reference no: EM131796480

Reference no: EM131796480

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