E$4\mathrm{.}9($LO $2,3),$ AP writins Air United, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, $50$ range

instruments and $300$ pressure gauges were produced, and overhead costs of $$94,500$ were estimated. An analysis of estimated overhead costs

reveals the following activities.

Compute overhead rates and assign overhead using ABC.

The cost driver volume for each product was as follows.

a$.$ Determine the overhead rate for each activity.

b$.$ Assign the manufacturing overhead costs for April to the two products using activity$-$based costing.

c$.$ Write a memorandum to the president of Air United explaining the benefits of activity$-$based costing,