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Brief Exercise 164 Bark Manufacturing has three activities in its manufacturing process: machine setups, machining, and inspections.
Bark Manufacturing has three activities in its manufacturing process: machine setups, machining, and inspections. Estimated annual overhead cost for each activity is $80,000, $162,500, and $28,000, respectively. The expected annual use in each department is 1,000 setups, 12,500 machine hours, and 875 inspections.
Compute the overhead rate for each activity.
Machine setups$
per setupMachining$
per machine hourInspections$
per inspection