Question
Ahlia Printing has contracts to complete weekly supplements required by eighty customers. For the year 2020, manufacturing overhead cost estimates total $520,000 for an annual
Ahlia Printing has contracts to complete weekly supplements required by eighty customers. For the year 2020, manufacturing overhead cost estimates total $520,000 for an annual production capacity of 10 million pages. For 2020 Ahlia Printing decided to evaluate the use of additional cost pools. After analyzing manufacturing overhead costs, it was determined that number of design changes, setups, and inspections are the primary manufacturing overhead cost drivers. The following information was gathered during the analysis: Cost poolManufacturing overhead costsActivity level Design changes$ 80,000200 design changes Setups360,0004,000 setups Inspections80,00016,000 inspectionsTotal manufacturing overhead costs$520,000 During 2020, two customers, Ali, and Fatima, are expected to use the following printing services: ActivityAliFatima Pages60,00076,000 Design changes102 Setups2010 Inspections3038Instructions: If traditional costing based on pages number is used, how much overhead is assigned to Ali and Fatima this year? (6 marks) Assuming activity-cost pools are used, what is the manufacturing overhead cost estimate for Ali and for Fatima during 2020? Needs to find out the traditional cost.. No missing information first find out the MOH after the cost
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