Question
14 Velshi Printers has contracts to complete weekly supplements required by forty-six customers. For the year 2021 manufacturing overhead cost estimates total $1.500.000 for an
14 Velshi Printers has contracts to complete weekly supplements required by forty-six customers. For the year 2021 manufacturing overhead cost estimates total $1.500.000 for an annual production capacit For 2021 Velshi Printers has decided to evaluate the use of additional cost pools. After analyzing manufacturing overhead costs. it was determined that number of design changes, setups and i manufacturing overhead cost drivers. The following information was gathered during the analysis Cost pool Design changes Manufacturing everhead costs $100,000 Setups inspections 1.300.000 Total manufacturing overhead costs 100.000 $1.300.000 Activity level 400 design changes 3.000 setups 10.000 inspections During 2021. two customers. Money Managers and Hospital Systems, are expected to use the following printing services Activity Pages Design changes Setups Inspections Money Manage 90.000 18 Hospital Systems 106.000 0 What is the cost driver rate if manufacturing overhead costs are considered one large cost pool and are assigned based on 10 million pages of production capacity a. 50.01 per page b. $0.14 per page c. $0.13 per page d. $0.15 per page Question 13 The fundamental cost objects of ABC are a. products b. activities c. cost drivers d. services L A Moving to another question will save this response. Question 12 Overcosting a particular product may result in: a. pricing the product too low b. understating total product costs c. pricing the product too high d. operating efficiencies A Moving to another question will save this response
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