Answer the Following Question(s) Using the Information Below

question 67

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 2012, manufacturing overhead cost estimates total $420,000 for an annual production capacity of 10 million pages.
For 2012 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 2012, two customers, Wayward Insurance and Hapless 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 Hapless Systems during 2012?

• A) $19,000
• B) $3,800
• C) $1,900
• D) $2,520
• E) $3,192

---

Definitions:

Isoquant

A curve representing all combinations of inputs that result in the production of a specific quantity of output in production theory.

Roller Skates

Shoes or boots with four wheels arranged in a rectangular pattern, allowing the wearer to glide along surfaces for recreation or sport.

Capital

Financial assets or the financial value of assets, such as funds held in deposit accounts, as well as the physical factors of production including machinery.

Labor

The human effort, both physical and mental, used to produce goods and services.