Answer the Following Question(s)using the Information Below

question 53

Multiple Choice

Answer the following question(s) using the information below.Wallace Printing has contracts to complete weekly supplements required by forty-six customers.For the year 2019, manufacturing overhead cost estimates total $420,000 for an annual production capacity of 10 million pages.For 2019 Wallace Printing 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 2019, two customers, Wayward Insurance and Hapless Systems, are expected to use the following printing services:

-When selling prices are based on costs assigned using the single cost driver, number of pages printed, then Hapless Systems

• A)is fairly billed because resources are allocated uniformly to all jobs.
• B)is grossly under billed for the job, while other jobs will be unfairly over billed.
• C)will be pleased because all customers will be under billed for their jobs.
• D)will contribute too little to profits, and Wallace Printing will not want to accept additional work.from the company
• E)will likely seek to do business with competitors.

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Definitions:

Axle Assembly

A central component of most vehicles' wheel systems, joining the wheels on either side and often housing gears for transmitting torque from the engine.

Drum Brake Assembly

A type of brake system that uses brake shoes pressed outwards against a rotating drum to slow or stop a vehicle.

Non-servo Designs

Brake or other mechanical systems designed without the use of a servo mechanism, often simpler and requiring manual operation or greater force.

Secondary Shoe

In drum brakes, the brake shoe that is positioned to be actuated secondarily during brake application.