Answer the Following Questions Using the Information Below

question 164

Multiple Choice

Answer the following questions using the information below:
Velshi Printers has contracts to complete weekly supplements required by forty-six customers. For the year 2010, manufacturing overhead cost estimates total $840,000 for an annual production capacity of 12 million pages.
For 2010 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 2010, two customers, Money Managers and Hospital Systems, are expected to use the following printing services:

-Using pages printed as the only overhead cost driver, what is the manufacturing overhead cost estimate for Money Managers during 2010?

• A)$5,000
• B)$3,500
• C)$4,200
• D)$6,000

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Definitions:

Private Acceptance

The genuine internalization and acceptance of an idea or belief as true, often as a result of social influence.

Labeling Technique

A persuasion strategy that assigns a label to an individual and then requests a favor consistent with that label, influencing behavior.

Commitment and Consistency

The psychological principle that suggests individuals strive to be consistent in their beliefs and behaviors, especially once a commitment is made.

Inflated Request

A strategy where an initially large and unreasonable request is made with the expectation of settling for a lesser demand.