Answer:
Material handling= $37 per requisitons
Setups= $54 per setup
Inspections= $48 per inspection
Explanation:
Giving the following information:
Activities - Cost Drivers - total cost
Materials handling - Number of requisitions - $38,850
Machine setups - Number of setups - $26,190
Quality inspections - Number of inspections - $23,520
Number of requisitions= 1,050
Number of setups= 485
Number of inspections= 490
To calculate the estimated manufacturing overhead rate we need to use the following formula for each activity cost pool:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Material handling= 38,850/1,050= $37 per requisitons
Setups= 26,190/485= $54 per setup
Inspections= 23,520/490= $48 per inspection
