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Preview File Edit View Go Tools Window Help B a connect.secure.wellsfargo.com acg-4341-u01 1201 ch05b.pdf (page 2 of 4)-Edited 20 62% Tue 4:24 PM QOE

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Preview File Edit View Go Tools Window Help B a connect.secure.wellsfargo.com acg-4341-u01 1201 ch05b.pdf (page 2 of 4)-Edited 20 62% Tue 4:24 PM QOE O Q Search 4) Velshi Printers has contracts to complete weekly supplements required by forty-six customers. For the year 2018, manufacturing overhead cost estimates total $1,760,000 for an annual production capacity of 16 million pages. For 2018 Velshi 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: Manufacturing overhead costs Cost pool Design changes $160,000 Setups 1,530,000 Inspections 70,000 Total manufacturing overhead costs $1,760,000 Activity level 200 design changes 5,000 setups. 7,000 inspections During 2018, two customers, Money Managers and Hospital Systems, are expected to use the following printing services: Hospital Systems 76,000 Activity Money Managers Pages 60,000 Design changes 14 0 Setups 16 6 25 33 Inspections auforting resum tesur -2 020 20 pay

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