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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
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 ($259,600) Setups ($525,100) Packing ($190,000) Photo development ($377,300) Cost Driver Deluxe Moderate Economy Number of machine hours Number of setups Number of cartons Number of pictures 720 1,260 7 64 4,2001,700 1,200 220 23 10 13 26 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 opening:s 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 Moderate Economy 47,000 54,000 96,000 Determine the overhead cost per book for each book type. (Round intermediate calculations and final answers to 2 decimal places.) Deluxe Moderate Economy Cost per book
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