Textbooks are printed on standard A4 paper which costs $26 per ream of 500 sheets. Novels are printed on recycied A4 paper, Which is cut to A5 size (Le. 4 book pages are printed on each A4 page (2 per side) and the A4 page is cut in half after printing). The recycled paper costs $14 per ream of 500 sheets. Both textbooks and novels are finished with a light carcboard cover. These covers cost $60 for a pack of 50 covers: On average, 50% of Children's books are printed on recycled paper and 50 os are printed on standard papec. All children's books are a standard A4 size and finished with a heavy cardboard cover. The heavy cardboard covers cost $32 per pack of 20. Each customer order is printed as a single batch run, with the number of units determined by the type of book (see summarised betow). B1. The cost of each of the following inputs has been calculated below. Identify the most relevant cost driver for each item. Using the additional information, calculate the following. B2. Assume Vanity Press now decides to use only three (3) cost activity categones (Le. three cost pools) to allocate indirect costs: customer orders, sheets of paper printed, and labour hours. tdentify the application rate for each cost pool. (Round your answers to whole dotlars): CestdrivernumberofordersCostdriver-numberofsheetsRate=5Rate=5 Cost driver - number of labour hours Rate =5 Textbooks are printed on standard A4 paper which costs $26 per ream of 500 sheets. Novels are printed on recycied A4 paper, Which is cut to A5 size (Le. 4 book pages are printed on each A4 page (2 per side) and the A4 page is cut in half after printing). The recycled paper costs $14 per ream of 500 sheets. Both textbooks and novels are finished with a light carcboard cover. These covers cost $60 for a pack of 50 covers: On average, 50% of Children's books are printed on recycled paper and 50 os are printed on standard papec. All children's books are a standard A4 size and finished with a heavy cardboard cover. The heavy cardboard covers cost $32 per pack of 20. Each customer order is printed as a single batch run, with the number of units determined by the type of book (see summarised betow). B1. The cost of each of the following inputs has been calculated below. Identify the most relevant cost driver for each item. Using the additional information, calculate the following. B2. Assume Vanity Press now decides to use only three (3) cost activity categones (Le. three cost pools) to allocate indirect costs: customer orders, sheets of paper printed, and labour hours. tdentify the application rate for each cost pool. (Round your answers to whole dotlars): CestdrivernumberofordersCostdriver-numberofsheetsRate=5Rate=5 Cost driver - number of labour hours Rate =5
