Baldwin Printers Has Contracts to Complete Weekly Supplements Required by Forty-Two

question 33

Multiple Choice

Baldwin Printers has contracts to complete weekly supplements required by forty-two customers. For the year 2011, manufacturing overhead cost estimates total $1,840,000 for an annual production capacity of 20 million pages.
For 2011 Baldwin 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:
During 2011, two customers, Wellington Drugs and Home Again, are expected to use the following printing services:

-What is the cost driver rate if manufacturing overhead costs are considered one large cost pool and are assigned based on 20 million pages of production capacity?

• A)$0.10 per page
• B)$0.07 per page
• C)$0.092 per page
• D)$1.84 per page

Understand the sources of contract law and recognize different types of contracts and agreements.

Grasp the purpose and enforceability of quasi-contracts and the principle of preventing unjust enrichment.

Identify and understand specific contractual arrangements and their legal implications, such as the muta'a marriage contract.

Differentiate between formal and informal (simple) contracts.

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Definitions:

Diseconomies of Scale

A phenomenon that occurs when a company or business grows so large that the costs per unit increase.

Total Cost

The sum of all expenditures incurred in the production of goods or services, including fixed and variable costs.

Diseconomies of Scale

The phenomenon where production costs increase as a firm's output expands, leading to inefficiencies.

Long-Run Average Total Cost

The average cost per unit of output when all factors of production, including capital, are variable in the long term.