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EXERCISE #4 (3 points) Ricoh Printing Company is the publisher for many of the local newspapers and magazines. They publish nine periodicals and several other
EXERCISE #4 (3 points) Ricoh Printing Company is the publisher for many of the local newspapers and magazines. They publish nine periodicals and several other types of literature, including handouts and pamphlets. They have recently adopted an activity-based costing system to assign manufacturing overhead to products. The following data relate to one oftheir products, The Rich Weekly, and the ABC cost The Ricoh Weekly: Annual production 20,000 units $31 Direct material per unit $6 Direct labor per unit Manufacturing overhead cost pools Cost Pool Cost Cost Driver Material ordering $800,000 Number of Purchase orders Materials inspection 400,000 Number of receiving reports 2,000,000 Number of setups Equipment setup Quality control 900,000 Number of inspections Other 15,000,000 Direct labor cost Total mfg. overhead Annual activity information related to cost drivers
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