Sorce Instrument, Inc.
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| E4-11 (a,b) |
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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 | ||
| 2. Machine setups | Number of setups | 27,500 | ||
| 3. Quality inspections | Number of inspections | 27,000 | ||
| $89,500 | ||||
The cost driver volume for each product was as follows.
| Cost Driver | Instruments | Gauges | Total | ||||
| Number of requisitions | 400 | 600 | 1,000 | ||||
| Number of setups | 200 | 300 | 500 | ||||
| Number of inspections | 200 | 400 | 600 |
| |||
13 years ago
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