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:

Nonorganic failure to thrive

A condition observed in infants and young children who do not gain weight or grow as expected, without an underlying organic cause.

Adult's arms

Refers to the physical capacity and comfort that adults provide through holding or embracing, often conveying security and affection.

Adult height

The final height an individual achieves after completing the physiological growth phase, typically attained in late adolescence or early adulthood.

Years of age

A unit of measurement referring to the length of time a person or entity has existed, usually counted from birth in the case of individuals.