Mordica Company identifies three activities in its manufacturing process: machine setups, machining, and inspections. Estimated...
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Accounting
Mordica Company identifies three activities in its manufacturing process: machine setups, machining, and inspections. Estimated annual overhead cost for each activity is $227,520, $264,550, and $100,980, respectively. The cost driver for each activity and the expected annual usage are: number of setups 2,880, machine hours 24,050, and number of inspections 1,870. Compute the overhead rate for each activity.
Machine Setups $____________ Per setup
Machining $___________ Per machine hour
Inspections $____________ Per inspection hour
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