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

question 59

Multiple Choice

Velshi Printers has contracts to complete weekly supplements required by forty-six customers. For the year 2018, manufacturing overhead cost estimates total $1,500,000 for an annual production capacity of 10 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:

What is the cost driver rate if manufacturing overhead costs are considered one large cost pool and are assigned based on 10 million pages of production capacity?

• A) $0.01 per page
• B) $0.15 per page
• C) $0.14 per page
• D) $0.13 per page

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Definitions:

Pragmatic Thought

Decision making characterized by willingness to accept reality and compromise.

Labouvie-Vief's

refers to psychologist Gisela Labouvie-Vief's theories on cognitive and emotional development throughout the lifespan, emphasizing the complex interplay between logic and emotion as people age.

Cognitive Processes

Mental activities related to acquiring, processing, storing, and retrieving information, such as memory, perception, and problem-solving.

Relativistic Thinking

A stage of cognitive development in which individuals understand that knowledge is relative and dependent on the perspective from which it is viewed.