Answer the Following Question(s) Using the Information Below

question 110

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 2012, manufacturing overhead cost estimates total $420,000 for an annual production capacity of 12 million pages.
For 2012 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 2012, two customers, Wealth Managers and Health 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 Wealth Managers during 2012?

• A) $2,500
• B) $21,000
• C) $1,500
• D) $2,700
• E) $2,100