Mathematics, 15.02.2020 02:27 samara49
Air United, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 49 range instruments and 297 pressure gauges were produced, and overhead costs of $88,560 were estimated. An analysis of estimated overhead costs reveals the following activities.
Activities
Cost Drivers
Total Cost
1. Materials handling Number of requisitions
$38,850
2. Machine setups Number of setups
26,190
3. Quality inspections Number of inspections
23,520
$88,560
The cost driver volume for each product was as follows.
Cost Drivers
Instruments
Gauges
Total
Number of requisitions 420 630 1,050
Number of setups 225 260 485
Number of inspections 265 225 490
Air United, Inc. manufactures two products: missil
Air United, Inc. manufactures two products: missil
Determine the overhead rate for each activity.
Overhead Rate
Materials handling $
Machine setups $
Quality inspections $
Air United, Inc. manufactures two products: missil
Air United, Inc. manufactures two products: missil
Assign the manufacturing overhead costs for April to the two products using activity-based costing. (Round per unit answers to 2 decimal places, e. g. 12.25.)
Instruments
Gauges
Total cost assigned $
$
Overhead cost per Unit $
$
Answers: 3
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Air United, Inc. manufactures two products: missile range instruments and space pressure gauges. Dur...
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