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University Of Richmond Operations And Supply Chain Management Assignment Help - Major Instrument


Question - 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

$88,867



The cost driver volume for each product was as follows.

Cost Driver Instruments Gauges Total
Number of requisitions 418 624 1,042
Number of setups 187 305 492
Number of inspections 250 241 491






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