Velshi Printers Has Contracts to Complete Weekly Supplements Required by Forty-Six

question 115

Multiple Choice

Velshi Printers has contracts to complete weekly supplements required by forty-six customers. For the year 2018, manufacturing overhead cost estimates total $600,000 for an annual production capacity of 12 million pages.
For 2018 Velshi 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 2018, two customers, Money Managers and Hospital Systems, 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 Money Managers during 2018?

• A) $4,300
• B) $2,800
• C) $3,500
• D) $4,784

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Definitions:

Workforce Reduction

The process of decreasing the number of employees within a company through layoffs, attrition, or other methods to reduce costs or restructure operations.

Work Redesign

The process of altering a job by changing tasks or the way they are performed, aiming to enhance job satisfaction and productivity.

Systemic Change

denotes significant, overarching modifications in a system, whether in organizations, social systems, or ecosystems, aiming to transform the underlying structures and processes.

Reactive

A style of operation or behavior focusing on responding to events or situations rather than initiating or influencing them.