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QUESTION

Brief Exercise 164 Bark Manufacturing has three activities in its manufacturing process: machine setups, machining, and inspections.

Brief Exercise 164

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

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