Brief Exercise 17-5 Open Show Work LINK TO TEXT SAVE FOR LATER Brief Exercise 17

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Brief Exercise 17-5

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Brief Exercise 17-5

Morgana Company identifies three activities in its manufacturing process: machine setups, machining, and inspections. Estimated annual overhead cost for each activity is $165,900, $240,000, and $79,900, respectively. The cost driver for each activity and the expected annual usage are number of setups 2,100, machine hours 24,000, and number of inspections 1,700.

Compute the overhead rate for each activity.
Machine setups $

per setup Machining $

per machine hour Inspections $

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The correct answer is:

Notes:

Overhead Rates Machine setups $ 79 per setup Machining $ 10 per machine hour Inspections $ 47 per inspection

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