Question
During 2019, two customers, World Makers and Happy Studios, are expected to use the following printing services: ActivityWorld MakersHappy Studios Pages60,00076,000 Design changes100 Setups2010 Inspections3038
During 2019, two customers, World Makers and Happy Studios, are expected to use the following printing services:
ActivityWorld MakersHappy Studios
Pages60,00076,000
Design changes100
Setups2010
Inspections3038
4)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?
a.$0.05 per page
b.$0.035 per page
c.$0.35 per page
d.$0.025 per page
e.$0.045 per page
5)Using pages printed as the only overhead cost driver, what is the manufacturing overhead cost estimate for World Makers during 2019?
a.$2,500
b.$21,000
c.$1,500
d.$2,700
e.$2,100
6)Assuming activity-cost pools are used, what are the activity-cost driver rates for design changes, setups, and inspections cost pools?
a.$200 per change, $64 per setup, $5 per inspection
b.$180 per change, $76 per setup, $4 per inspection
c.$150 per change, $64 per setup, $4 per inspection
d.$180 per change, $76 per setup, $5 per inspection
e.$200 per change, $5 per setup, $64 per inspection
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