Sunland, 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 $$84,620$ were estimated. An analysis of estimated overhead costs reveals the following activities.

Activities

Cost Drivers

Total Cost

$1.$

Materials handling

Number of requisitions

$$32,640$

$2.$

Machine setups

Number of setups

$29,100$

$3.$

Quality inspections

Number of inspections

$22,880$

$$84,620$

The cost driver volume for each product was as follows.

Cost Drivers

Instruments

Gauges

Total

Number of requisitions

$4106101,020$

Number of setups

$210275485$

Number of inspections

$275245520$

$($a$)$

Your answer is correct.

Determine the overhead rate for each activity.

Overhead Rate

Materials handling

$enter a dollar amount per requisition

$32$

Correct answer

per requisition

Machine setups

$enter a dollar amount per setup

$60$

Correct answer

per setup

Quality inspections

$enter a dollar amount per inspection

$44$

Correct answer

per inspection

eTextbook and Media

Attempts: $1$ of $5$ used

$($b$)$

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$.12\mathrm{.}25.)$

Instruments

Gauges

Total cost assigned

$enter a dollar amount

$enter a dollar amount

Overhead cost per Unit

$enter a dollar amount rounded to $2$ decimal places

$enter a dollar amount rounded to $2$ decimal places

Answer rating: 100% (QA)

To determine the overhead rate for each activity we need to divide the total cost of each activity b... View the full answer