Major Instrument, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 47 range instruments and 303 pressure gauges were produced, and overhead costs of $88,867 were estimated. An analysis of estimated overhead costs reveals the following activities.
Activity Cost Driver Total Cost
1. Materials handling Number of requisitions $41,680
2. Machine setups Number of setups 25,092
3. Quality inspections Number of inspections 22,095