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ADDE U.abe x x Ay-A. Normal 1 YU Body YU H-1 YU H-2 YU H-5 YU SE Font Styles Paragraph Ersting Printers has contracts to

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ADDE U.abe x x Ay-A. Normal 1 YU Body YU H-1 YU H-2 YU H-5 YU SE Font Styles Paragraph Ersting Printers has contracts to complete weekly supplements required by forty-six customers. For the year 2018, manufacturing overhead cost estimates total $420,000 for an annual production capacity of 12 million pages For 2018 Ersting 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 inspections are the primary manufacturing overhead cost drivers. The following information was gathered during the analysis Cost pool Design changes Setups Inspections Total manufacturing overhead costs Manufacturing overhead costs Activity level $60,000 300 design changes 320,000 5.000 setup 40.000 8,000 inspections $420.000 During 2018, two customers, Wealth Managers and Health Systems, are expected to use the following printing services Health Systems 76.000 Activity Pages Design changes Setups Inspections Wealth Managers 60,000 10 20 30 10 38 a) What is the cost driver rate if manufacturing overhead costs are considered one large cost pool and are assigned based on 12 million pages of production capacity? English (United States) earch U . abx x, X Amy. A TT Normal T YU Body YUH-1 YU H-2 YU H-5 YU Smal Font 5 Paragraph Styles b) Using pages printed as the only overhead cost driver, what is the manufacturing overhead cost estimate for Wealth Managers during 2018? I c) Assuming activity-cost pools are used, what are the activity-cost driver rates for design changes, setups, and inspections cost pools? d) Using activity-based costing to allocate overhead costs, what is the total manufacturing overhead cost estimate for Wealth Managers during 2018? English (United States) arch 932

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