Current Attempt in Progress Swifty Company identifies three activities in its manufacturing process: machine setups, machining, and inspections. Estimated annual overhead cost for each activity is \( \$ 157,500, \$ 421,600 \), and \( \$ 60,000 \), respectively. The cost driver for each activity and the estimated annual usage are number of setups 2,100 , machine hours 24,800 , and number of inspections 1,200 . Compute the overhead rate for each activity. Machine setups \( \$ \square \) per setup Machining Inspections \( \$ \square \)

To compute the overhead rate for each activity, you'll divide the estimated annual overhead cost for each activity by the estimated annual usage of the corresponding cost driver. 1. **Machine Setups Overhead Rate:** - Estimated Annual Overhead Cost: \( \$157,500 \) - Estimated Usage (Setups): \( 2,100 \) - Overhead Rate = \( \frac{157,500}{2,100} = \$75 \) per setup. 2. **Machining Overhead Rate:** - Estimated Annual Overhead Cost: \( \$421,600 \) - Estimated Usage (Machine Hours): \( 24,800 \) - Overhead Rate = \( \frac{421,600}{24,800} = \$17 \) per machine hour. 3. **Inspections Overhead Rate:** - Estimated Annual Overhead Cost: \( \$60,000 \) - Estimated Usage (Inspections): \( 1,200 \) - Overhead Rate = \( \frac{60,000}{1,200} = \$50 \) per inspection. So, your overhead rates are as follows: Machine setups: \( \$75 \) per setup Machining: \( \$17 \) per machine hour Inspections: \( \$50 \) per inspection