Question
Ernsting Printers has contracts to complete weekly supplements required by forty-six customers. For the year 2022, manufacturing overhead cost estimates total $420,000 for an annual
Ernsting Printers has contracts to complete weekly supplements required by forty-six customers. For the year 2022, manufacturing overhead cost estimates total $420,000 for an annual production capacity of 1,200,000 pages. For 2022, Ernsting 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 Manufacturing overhead costs Activity level Design changes $60,000 300 design changes Setups 320,000 5,000 setups Inspections 40,000 8,000 inspections Total manufacturing overhead costs $420,000 During 2022, two customers, Wealth Managers and Health Systems, are expected to use the following printing services: Activity Wealth Managers Health Systems Pages 60,000 76,000 Design changes 10 0 Setups 20 10 Inspections 30 38 Using activity-based costing to allocate overhead costs, what is the total manufacturing overhead cost estimate for Wealth Managers during 2022?
Select one: a. $3,250 b. $3,430 c. $5,096 d. $4,020 e. $6,850
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