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

---

Definitions:

Workload

The amount of work assigned to or expected from a person or group within a given time frame.

Stress Test

A medical test that assesses how a person's heart functions during physical activity or under pharmacological stimulation.

Magnifying Lens

An optical lens or combination of lenses used to enlarge the appearance of objects.

Bright Light

Intense, vivid light that is significantly brighter than the surrounding environment, often used in therapy to treat certain mood disorders.