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Business, 27.07.2021 16:20 abdirahmansoloman

Air United, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 45 range instruments and 295 pressure gauges were produced, and overhead costs of $72,750 were estimated. An analysis of estimated overhead costs reveals the following activities. Activities Cost Drivers Total Cost
1. Materials handling Number of requisitions $40,000
2. Machine setups Number of setups 21,500
3. Quality inspections Number of inspections 33,000
$94,500

The cost driver volume for each product was as follows:

Cost Drivers Instruments Gauges Total
Number of requisitions 400 600 1,000
Number of setups 200 300 500
Number of inspections 200 400 600

Required:
Determine the overhead rate for each activity.

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