21)Bob is a printer for forty-six customers. For the year 2015, O/H cost estimates total $840,000 for an annual production capacity of 12 million pages. For 2015, Bob decided to evaluate the use of additional cost pools. After analyzing O/H costs, it was determined that number of design changes, setups, and inspections are the primary O/H cost drivers. The following information was gathered during the analysis:

Cost pool Manufacturing overhead costs Activity level

Design changes $ 120,000 300 design changes

Setups 640,000 5,000 setups

Inspections 80,000 8,000 inspections

Total manufacturing overhead costs $840,000

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

Activity Money Managers Hospital Systems

Pages 60,000 76,000

Design changes 10 0

Setups 20 10

Inspections 30 38

Using pages printed as the only O/H cost driver, what is the O/H cost estimate for Money Managers for 2015?

22)Jill makes two models of office chairs, a standard and a deluxe model. The following activity and cost information has been compiled:

Number of Number of Number of

Product Setups Components Direct Labor Hours

Standard 12 8 255

Deluxe 28 12 245

Overhead costs $52,000 $78,000

Assume a traditional costing system applies the O/H costs based on DLH. What is the total amount of O/H costs assigned to the standard model?