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

question 73

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:

-Using pages printed as the only overhead cost driver,what is the manufacturing overhead cost estimate for Wellington Drugs during 2011?

• A)$5,000
• B)$8,280
• C)$11,200
• D)$18,500

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