Answer the Following Question(s)using the Information Below

question 86

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 2019, manufacturing overhead cost estimates total $420,000 for an annual production capacity of 10 million pages.For 2019 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 2019, two customers, Wayward Insurance and Hapless Systems, are expected to use the following printing services:

-Assuming activity-cost pools are used, what are the activity-cost driver rates for design changes, setups, and inspections cost pools?

• A)$300 per change, $80 per setup, $2.50 per inspection
• B)$250 per change, $80 per setup, $3.75 per inspection
• C)$210 per change, $2.50 per setup, $26.25 per inspection
• D)$300 per change, $125 per setup, $4.00 per inspection
• E)$300 per change, $2.50 per setup, $80 per inspection

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Definitions:

Bonds

Bonds are fixed-income securities that represent a loan made by an investor to a borrower, typically corporate or governmental, where the borrower agrees to pay back the principal plus interest at a specified date.

Market Interest Rate

The prevailing rate of interest available in the marketplace on comparable instruments, impacting borrowing costs and investment returns.

Noncallable

A bond or other financial instrument that cannot be redeemed or paid off before its specified maturity date by the issuer.

Par Value

The face value of a bond or stock, representing the amount to be returned to the holder at maturity.