Please see attached PDF. I am stuck on this problem. Help please.

2/13/2016 Chapter 5 - GRADED - Assignment Managerial Accounting - MBA 520 Spring 1 2016: MBA 520-81 Spring 1 2016 Ch apter 5 - GR ADED - As s ign men t 1. Ashley Butterfield in s tr u ction s | h elp value: 33.33 poin ts Exercise 5-9A Allocating costs with different cost drivers LO 5-2, 5-3 Wallace Publishing identified the following overhead activities, their respective costs, and their cost drivers to produce the three types of textbooks the company publishes. Type of Textbook Activity (Cost) Machine maintenance ($180,000) Setups ($315,000) Packing ($81,000) Photo development ($252,000) Cost Driver Number of machine hours Number of setups Number of cartons Number of pictures Deluxe 300 30 10 4,000 Moderate Economy 900 1,200 15 5 30 50 2,000 1,000 Deluxe textbooks are made with the finest-quality paper, six-color printing, and many photographs. Moderate texts are made with three colors and a few photographs spread throughout each chapter. Economy books are printed in black and white and include pictures only in chapter openings. Required: a. Wallace currently allocates all overhead costs based on machine hours. The company produced the following number of books during the prior year. Deluxe 50,000 Moderate 150,000 Economy 200,000 Determine the overhead cost per book for each book type. (Round your answers to 2 decimal places.) Deluxe Moderate Economy Cost per book b. Determine the overhead cost per book, assuming that the volume-based allocation system described in Requirement a is replaced with an activity-based costing system. (Round your answers to 2 decimal places.) Deluxe Moderate Economy Cost per book References http://ezto.mheducation.com/hm.tpx 1/2 2/13/2016 Chapter 5 - GRADED - Assignment Worksheet Difficulty: 2 Medium Exercise 5-9A Allocating costs with different cost drivers LO 5-2, 5-3 Learning Objective: 05-03 Use activity-based costing to calculate costs of products and services. Learning Objective: 05-02 Identify cost centers and cost drivers in an activitybased costing system. 2 016 M c G r aw - H i l l E d u c at i o n . A l l r i g h t s r e s e r v e d . http://ezto.mheducation.com/hm.tpx 2/2