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 pool Manufacturing overhead costs Activity level Design changes $ 80,000 200 design changes Setups 360,000 4,000 setups Inspections 80,000 16,000 inspections Total manufacturing overhead costs $520,000 During 2020, two customers, Ali, and Fatima, are expected to use the following printing services: Activity Ali Fatima Pages 60,000 76,000 Design changes 10 2 Setups 20 10 Inspections 30 38 Instructions: 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? (6 mar
Need to find the traditional cost
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