sorce instrument inc 501152
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sorce instrument inc 501152
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E4-11 (a,b) |
Sorce Instrument, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 300 pressure gauges were produced, and overhead costs of $89,500 were estimated. An analysis of estimated overhead costs reveals the following activities.
|
Activity |
Cost Driver |
Total Cost |
||
|
1. Materials handling |
Number of requisitions |
$35,000 |
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|
2. Machine setups |
Number of setups |
27,500 |
||
|
3. Quality inspections |
Number of inspections |
27,000 |
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|
$89,500 |
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The cost driver volume for each product was as follows.
|
Cost Driver |
Instruments |
Gauges |
Total |
||||
|
Number of requisitions |
400 |
600 |
1,000 |
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|
Number of setups |
200 |
300 |
500 |
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| Number of inspections |
200 |
400 |
600 |
||||
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