Sorce Instrument, Inc. manufactures two products: missile range instrumentsand space pressure gauges. During April, 50 range instruments and 300 pressure gaugeswere produced, and overhead costs of $89,500 were estimated. An analysis of estimatedoverhead costs reveals the following activities. Activities Cost Drivers Total Cost1.Materials handling Number of requisitions $35,0002. Machine setups Number of setups 27,5003. Quality inspections Number of inspections 27,000 Total $89,500The cost driver volume for each product was as follows:Cost Drivers Instruments Gauges TotalNumber of requisitions 400 600 1,000Number of setups 200 300 500Number of inspections 200 400 600Instructions :(a) Determine the overhead rate for each activity.(b) Assign the manufacturing overhead costs for April to the two products using activity based costing
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