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Ernsting Printers has contracts to complete weekly supplements required by forty-six customers. For the year 2017, 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 2017, manufacturing overhead cost estimates total $420,000 for an annual production capacity of 12 million pages For 2017, 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 Pools Manufacturing Overhead Costs Activity Level 300 de $60,0 320 changes ups 5,000 0,000 8,000 i 420 ctions otal manu overhead costs During 2017, two customers, Wealth Managers and Health Systems, are expected to use the following printing services ctivi Wealth Managers Health Systems 60 76 gn cha Fill in the blanks below using the information above 1. 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? $ rounded to three decimal places 2. Using pages printed as the only overhead cost driver, what is the manufacturing overhead cost estimate for Wealth Managers during 2012? rounded to the nearest S1 (no decimal places) 3. Assuming activity-cost pools are used, what are the activity-cost driver rates for inspections cost pools? 4. Using activity-based costing to allocate overhead costs, what is the total manufacturing overhead cost estimate for Wealth Managers during 2012? rounded to the nearest $1 (no decimal places) rounded to the nearest S1 (no decimal places)
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