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Ahlia Printing has contracts to complete weekly supplements required by forty-six customers, For the year 2014, manufacturing overhead cost estimates total $420,000 for an annual
Ahlia Printing has contracts to complete weekly supplements required by forty-six customers, For the year 2014, manufacturing overhead cost estimates total $420,000 for an annual n capacity of 12 million pages. For 2014 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 Design changes Setups 60,000 320,000 40.000 S420,000 200 design changes 4,000 setups 16,000 inspections Total manufacturing overhead costs During 2014, two customers, Wealth Managers and Health Systems, are expected to use the following printing services: Pages Design changes Setups Inspections 60,000 10 20 30 76,000 10 38 Instructions: Assuming activity-cost pools are used, what is the manufacturing overhead cost estimate for Health Systems and for Wealth Mangers during 2014
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