Crane, 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 $88,010 were estimated. An analysis of estimated overhead costs reveals the following activities. 1.. Materials handling 2. Machine setups 3. Activities Quality inspections (a) The cost driver volume for each product was as follows. Cost Drivers Number of requisitions Number of setups Number of inspections Materials handling $ Machine setups Cost Drivers $ Number of requisitions Number of setups Number of inspections Quality inspections $ Instruments Gauges 390 200 240 Determine the overhead rate for each activity. 640 295 265 Total Cost $37,080 28,710 22,220 $88,010 Total 1,030 495 505 Overhead Rate per requisition per setup per inspection

Crane, 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 $88,010 were estimated. An analysis of estimated overhead costs reveals the following activities. 1.. Materials handling 2. Machine setups 3. Activities Quality inspections (a) The cost driver volume for each product was as follows. Cost Drivers Number of requisitions Number of setups Number of inspections Materials handling $ Machine setups Cost Drivers $ Number of requisitions Number of setups Number of inspections Quality inspections $ Instruments Gauges 390 200 240 Determine the overhead rate for each activity. 640 295 265 Total Cost $37,080 28,710 22,220 $88,010 Total 1,030 495 505 Overhead Rate per requisition per setup per inspection

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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