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Rogers Printing Ltd

question 52

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Rogers Printing Ltd.has contracts to complete weekly supplements required by its' customers.For the current year,manufacturing overhead cost estimates total $580,000 for an annual production capacity of 14,500,000 pages.
Rogers 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:
Rogers Printing Ltd.has contracts to complete weekly supplements required by its' customers.For the current year,manufacturing overhead cost estimates total $580,000 for an annual production capacity of 14,500,000 pages. Rogers 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: Two customers,Jackson Sports and Beaufort Travel,are expected to use the following printing services: Pages are a direct cost at $0.02 per page.Design costs per job average $1,500 and $1,700 for Jackson Sports and Beaufort Travel,respectively.Rogers Printing sets prices at $0.11 per page plus 120% of design costs. Assume that all costs are variable. Required: Prepare income statements in contribution margin format for both customers using: a.Traditional (simple)costing with overhead applied on a page capacity basis b.Activity-based costing c.How much a page should Jackson Sports be charged if Rogers Printing wants to breakeven on this customer? Assume that manufacturing overhead costs are fixed and that they are allocated to customers based on pages sold as a percentage of production capacity;and,that design costs are also fixed.
Two customers,Jackson Sports and Beaufort Travel,are expected to use the following printing services:
Rogers Printing Ltd.has contracts to complete weekly supplements required by its' customers.For the current year,manufacturing overhead cost estimates total $580,000 for an annual production capacity of 14,500,000 pages. Rogers 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: Two customers,Jackson Sports and Beaufort Travel,are expected to use the following printing services: Pages are a direct cost at $0.02 per page.Design costs per job average $1,500 and $1,700 for Jackson Sports and Beaufort Travel,respectively.Rogers Printing sets prices at $0.11 per page plus 120% of design costs. Assume that all costs are variable. Required: Prepare income statements in contribution margin format for both customers using: a.Traditional (simple)costing with overhead applied on a page capacity basis b.Activity-based costing c.How much a page should Jackson Sports be charged if Rogers Printing wants to breakeven on this customer? Assume that manufacturing overhead costs are fixed and that they are allocated to customers based on pages sold as a percentage of production capacity;and,that design costs are also fixed.
Pages are a direct cost at $0.02 per page.Design costs per job average $1,500 and $1,700 for Jackson Sports and Beaufort Travel,respectively.Rogers Printing sets prices at $0.11 per page plus 120% of design costs.
Assume that all costs are variable.
Required:
Prepare income statements in contribution margin format for both customers using:
a.Traditional (simple)costing with overhead applied on a page capacity basis
b.Activity-based costing
c.How much a page should Jackson Sports be charged if Rogers Printing wants to breakeven on this customer? Assume that manufacturing overhead costs are fixed and that they are allocated to customers based on pages sold as a percentage of production capacity;and,that design costs are also fixed.

Comprehend the impact of human activities on biodiversity and ecosystem function.
Describe the goals and methods of restoration ecology.
Understand the role of ecotourism and other economic activities in conserving natural habitats and biodiversity.
Identify the consequences of introducing alien species into ecosystems.

Definitions:

Modeling

A method of learning that involves observing and mimicking the behavior of others.

Ineffective Punishment

A form of discipline that fails to decrease the occurrence of a behavior; it may lack consistency, immediacy, or connection to the specific behavior.

Fear

A basic emotion induced by a perceived threat, leading to confrontation with or avoidance of said threat.

Rebellious

describes a person, behavior, or action showing a desire to resist authority, control, or convention.

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