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:

Cone Vision

The visual perception enabled by cone cells in the retina of the eye, allowing for color vision and detailed vision in bright light conditions.

Rod Vision

A type of vision that is made possible by rod cells in the retina, allowing individuals to see in low light conditions.

Nearsightedness

Nearsightedness, also known as myopia, is a condition of the eye where close objects appear clear, but distant objects appear blurry, resulting from a longer eyeball or excessive curvature of the cornea.

Focuses

Directs attention, effort, or concentration toward a specific object, activity, or task.