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a. 6. Assuming activity-cost pools are used, what are the activity-cost driver rates for design changes, setups, and inspections cost pools? $300 per change, $80

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a. 6. Assuming activity-cost pools are used, what are the activity-cost driver rates for design changes, setups, and inspections cost pools? $300 per change, $80 per setup, $2.50 per inspection b. $250 per change, $80 per setup, $3.75 per inspection $210 per change, $2.50 per setup, $26.25 per inspection d. $300 per change, $125 per setup, $4.00 per inspection $300 per change, $2.50 per setup, $80 per inspection C. e. taph Styles Editing New Gro Wallace Printing has contracts to complete weekly supplements required by forty-six customers. For the year 2019, manufacturing overhead cost estimates total $420,000 for an annual production capacity of 10 million pages. For 2019 Wallace Printing decided to evaluate the use of additional cost pools. After analyzing manufacturing overhead costs, it was determined that number of design changes, setups, and inspections are the primary manufacturing overhead cost drivers. The following information was gathered during the analysis: Cost pool Manufacturing overhead costs Activity level $60,000 Design changes Setups 320,000 200 design changes 4,009 setups 16,000 inspections Inspections 40,000 Total manufacturing overhead costs $420,000 During 2019, two customers, Wayward Insurance and Hapless Systems, are expected to use the following printing services: Activity Wayward Insurance Hapless Systems Pages 60,000 76,000 Design changes 10 2 Setups 20 10

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