E4-11 (ab) 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 $89500 were estimated. An analysis of estimated overhead costs reveals the following activities. Activity Cost Driver Total Cost 1. Materials handling Number of requisitions $35000 2. Machine setups Number of setups 27500 3. Quality inspections Number of inspections 27000 $89500 The cost driver volume for each product was as follows. Cost Driver Instruments Gauges Total Number of requisitions 400 600 1000 Number of setups 200 300 500 200 400 600