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1.(25 Points) Consider the Williston Printing Company which specializes in printing restaurant menus and wedding invitations. The overhead or indirect costs at Williston are from
1.(25 Points) Consider the Williston Printing Company which specializes in printing restaurant menus and wedding invitations. The overhead or indirect costs at Williston are from storage of completed print jobs and the proofreading of these print jobs. For the past quarter, the total storage and proofreading cost were: Storage Costs $300,000 Proofreading Costs $200,000 Storage of completed print jobs makes use of Williston's 2000 square foot warehouse. Finished menu print jobs are typically in 1500 square feet of the warehouse. The remaining space is used to store completed wedding invitations. Proofreading costs are driven by the time spent by the proofreader on the different types of print jobs. Estimates of these proofreading times are 30% on wedding invitations and the remaining time on menus. Within the above scenario, apply activity-based costing and answer the following question. a. What is the dollar amount of the overhead or indirect storage costs allocated to wedding invitations and to menus? b. What is the dollar amount of the overhead or indirect proofreading costs allocated to wedding invitations and to menus
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