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Boise State University Operations And Supply Chain Management Assignment Help - Making Exercises

Question - 1.
2. E4-11 (a,b)
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
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
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
a) Determine ...Read More

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