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Question 4 of 13

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Cullumber, 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 $84,460 were estimated. An analysis of estimated overhead costs

reveals the following activities.

1.

2.

3.

Activities

Materials handling

Machine setups

Quality inspections

Cost Drivers

Number of requisitions

Number of setups

Number of inspections

The cost driver volume for each product was as follows.

Cost Drivers

Number of requisitions

Number of setups

Number of inspections

Instruments Gauges

390

190

250

610

295

255

Total Cost

$37,000

24,735

22,725

$84,460

-/1

Total

1,000

485

505

Fig: 1