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

question 174

Multiple Choice

Velshi Printers has contracts to complete weekly supplements required by forty-six customers. For the year 2018, manufacturing overhead cost estimates total $1,760,000 for an annual production capacity of 16 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:

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

• A) $800.00 per change, $306.00 per setup, $10.00 per inspection
• B) $800.00 per change, $14.00 per setup, $218.57 per inspection
• C) $32.00 per change, $10.00 per setup, $306.00 per inspection
• D) $22.86 per change, $306.00 per setup, $350 per inspection

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Definitions:

Absolutism

A form of government where the ruler holds total authority over the government and the lives of the people, often found in monarchies.

Rulers

Individuals who hold a position of authority and control in governance, often within a monarchy or an empire, making key decisions and leading the state.

Subjects

Individuals under the rule of a monarch or government, often considered in relation to their rights and obligations.

Dutch Republic

A historic country in Europe that existed from the late 16th century to the late 18th century, known for its pioneering role in finance, trade, and the arts during the Golden Age.