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

question 78

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:

-Assuming activity-cost pools are used,what are the activity-cost driver rates for design changes,setups,and inspections cost pools?

• A)$1,300 per design change, $130.00per setup, $20 per inspection
• B)$360 per design change, $3.20per setup, $6.40 per inspection
• C)$1,680 per design change, $5.38 per setup, $42 per inspection
• D)$286 per design change,$15.38 per setup,$20 per inspection

Analyze the role of internal controls in preventing unauthorized transactions.

Understand the accounting procedures for warranty expenses and the impact of actual warranty repairs on financial statements.

Grasp the importance of estimating liabilities in accordance with accrual accounting principles.

Understand the implications of environmental liabilities on corporate financial reporting and management.

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Definitions:

Quantity Demanded

The aggregate quantity of a product or service that buyers are prepared to buy at a given price.

Excess Supply

A situation where the quantity of a product offered for sale by producers exceeds the quantity that consumers are willing to buy at a given price.

Quantity Supplied

The total amount of a specific good or service that producers are willing and able to sell at a particular price over a given period of time.

Quantity Demanded

The specific amount of a product that consumers are willing and able to buy at a given price over a certain period of time.