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Ersting Printers has contracts to complete weekly supplements required by forty-six customers. For the year 2018, manufacturing overhead cost estimates total $420,000 for an annual
Ersting Printers has contracts to complete weekly supplements required by forty-six customers. For the year 2018, manufacturing overhead cost estimates total $420,000 for an annual production capacity of 12 million pages For 2018 Ersting Printers has decided to evaluate the use of additional cost pools. After analyzing manufacturing overhead costs, it was determined that number of design charges, setups, and inspections are the primary manufacturing overhead cost drivers. The following information was gathered during the analysis Manufacturing overhead Cost pool 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 2015, two customers, Wealth Managers and Health Systems, are expected to use the following printing services Wealth Health Activity Managers Systems Pages 60,000 76,000 Design changes 10 Setups 20 10 Inspections 30 35 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. 564 per setup. 55 per inspection B) $180 per change $76 per setup. S4 per inspection C) $150 per change, 564 per setup. S4 per inspection DI 5180 per change. 576 per setup. $5 per inspection E) $200 per change, 55 per setup, $64 per inspection
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