Business, 11.02.2020 00:15 lyne29

Velshi Printers has contracts to complete weekly supplements required by forty−six customers. For the year 2015, manufacturing overhead cost estimates total $1,440,000 for an annual production capacity of 16 million pages.

For 2015 Velshi Printers has decided to evaluate the use of additional cost pools. After analyzing manufacturing overheadcosts, it was determined that number of design changes, setups, and inspections are the primary manufacturing overhead cost drivers. The following information was gathered during theanalysis:

Cost pool

Manufacturing overhead costs

Activity level

Design changes

$160,000

400 design changes

Setups

1,230,000

2,000 setups

Inspections

50,000

8,000 inspections

Total manufacturing overhead costs

$1,440,000

During 2015, two customers, Money Managers and HospitalSystems, are expected to use the following printing services:

Activity

Money Managers

Hospital Systems

Pages

100,000

116,000

Design changes

12

0

Setups

19

9

Inspections

27

35

Assuming activity−cost pools are used, what are the activity−cost driver rates for design changes, setups, and inspections cost pools?

Answers: 2

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Velshi Printers has contracts to complete weekly supplements required by forty−six customers. For th...

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