Answer the Following Question(s)using the Information Below

question 113

Multiple Choice

Answer the following question(s) using the information below.Ernsting Printers has contracts to complete weekly supplements required by forty-six customers.For the year 2018, manufacturing overhead cost estimates total $420,000 for an annual production capacity of 12 million pages.For 2018 Ernsting 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, Wealth Managers and Health 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)$200 per change, $64 per setup, $5 per inspection
• B)$180 per change, $76 per setup, $4 per inspection
• C)$150 per change, $64 per setup, $4 per inspection
• D)$180 per change, $76 per setup, $5 per inspection
• E)$200 per change, $5 per setup, $64 per inspection

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Definitions:

Competitive Market

A market structure characterized by a large number of buyers and sellers, where no single participant can significantly influence prices.

Build A Bear Shop

A retail company and concept where customers can create, personalize, and purchase their own stuffed animals through an interactive process.

Total Revenue

The overall amount of money generated by a firm from selling its goods or services, calculated as the quantity sold multiplied by the price of the goods.

Average Revenue

The amount of income generated per unit of sales or product sold, calculated by dividing total revenue by the number of units sold.