Three activities in its manufacturing process

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Reference no: EM13917207

Mordica Company identifies three activities in its manufacturing process: machine setups, machining, and inspections. Estimated annual overhead cost for each activity is $150,000, $325,000, and $87,500, respectively. The cost driver for each activity and the expected annual usage are number of setups 2,500, machine hours 25,000, and number of inspections 1,750.

Compute the overhead rate for each activity.

Machine setups	$______	per setup
Machining	$______	per machine hour
Inspections	$_______	per inspection

Reference no: EM13917207

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