Answer the Following Questions Using the Information Below

question 173

Multiple Choice

Answer the following questions using the information below:
Whitman Printing has contracts to complete weekly supplements required by forty-six customers. For the year 20X5, manufacturing overhead cost estimates total $840,000 for an annual production capacity of 12 million pages.
For 2010 Whitman 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 2010, two customers, Money Managers and Hospital Systems, are expected to use the following printing services:

-Using the cost driver rate determined in the previous question, what is the manufacturing overhead cost estimate for Hospital Systems during 2010?

• A)Manufacturing overhead costs applied to Hospital Systems total $4,200.
• B)Manufacturing overhead costs applied to Hospital Systems total $3,800.
• C)Manufacturing overhead costs applied to Hospital Systems total $5,320.
• D)Manufacturing overhead costs applied to Hospital Systems total $7,200.

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Definitions:

Quantity of Matter

This term typically refers to the mass of an object or substance, indicating the amount of material present.

U.S. President

The elected head of state and head of government of the United States, serving as the country's chief executive officer.

Quaker

A member of the Religious Society of Friends, a Christian movement known for its pacifist beliefs, silent worship, and simplicity.

Rules of Logic

Fundamental guidelines that govern the structure of valid arguments and sound reasoning.