Answer the Following Question(s)using the Information Below

question 32

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 2016,manufacturing overhead cost estimates total $420,000 for an annual production capacity of 10 million pages.
For 2016 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 2016,two customers,Wayward Insurance and Hapless Systems,are expected to use the following printing services:

-Using activity-based costing to allocate overhead costs,what is the total manufacturing overhead cost estimate for Hapless Systems during 2016?

• A)$3,113.75
• B)$1,495.00
• C)$2,068.00
• D)$3,412.50
• E)$3,665.00

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Definitions:

Departmental Personnel

Employees or staff members who work within a specific department of an organization.

Profit Margin

A measure of profitability, calculated as net income divided by revenue, indicating the percentage of revenue that exceeds the costs of goods sold.

Investment Turnover

Investment turnover measures how effectively a company uses its assets to generate sales revenue, indicating the efficiency of asset management.

Return on Investment

A measure used to evaluate the efficiency of an investment, calculated by dividing net profit by the cost of the investment.