Question

Exercise 4-9 a-b (Video Air United, 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 $72,750 were estimated. An analysis of estimated overhead costs reveals the following activities. Activities Cost Drivers Total Cost 1. Materials handling 2. Machine setups 3. Quality inspections Number of requisitions Number of setups Number of inspections $30,000 23,750 19,000 $72,750 The cost driver volume for each product was as follows. Cost Drivers Instruments Gauges Total Number of requisitions Number of setups Number of inspections 375 175 225 625 300 250 1,000 475 475 Determine the overhead rate for each activity. Overhead Rate Materials handling Machine setupss Quality inspections 30 per requisition 50 per setup 40 per inspection s LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR EXERCISE 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 Click if you would like to Show Work for this question: Open Show Work

Specifically part B

Answer 1

Allocation of manufacturing overhead :

	Instruments	Gauges
Total cost assigned	$29,000 [ ( 375 requisitions * $30 ) + ( 175 Setups * $50 ) + ( 225 inspections * $40 ) ]	$43,750 [ ( 625 requisitions * $30 ) + ( 300 setups * $50 ) + ( 250 inspections * $40 ) ]
Overhead cost per unit [ Total cost assigned / Number of units ]	$580 [ $29,000 / 50 ]	$218.75 [ $43,750 / 200 ]