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Whitman Printing Has Contracts to Complete Weekly Supplements Required by Forty-Six

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Whitman Printing has contracts to complete weekly supplements required by forty-six customers.For the year 20X5,manufacturing overhead cost estimates total $840,000 for an annual production capacity of 12 million pages. For 2010,Whitman 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:
 Cost pool  Manufacturing overhead costs  Activity level  Design changes $120,000200 design changes  Setups 640,0004,000 setups  Inspections 80,00016,000 inspections  Total manufacturing overhead costs $840,000\begin{array} { l r r } \text { Cost pool } & \text { Manufacturing overhead costs } & \underline { \text { Activity level } } \\\text { Design changes } & \$ 120,000 & 200 \text { design changes } \\\text { Setups } & 640,000 & 4,000 \text { setups } \\\text { Inspections } & \underline{80,000} & 16,000 \text { inspections } \\\text { Total manufacturing overhead costs } & \$ 840,000 &\end{array} During 2010,two customers,Money Managers and Hospital Systems,are expected to use the following printing services:
 Activity  Money Managers  Hospital Systems  Pages 60,00076,000 Design changes 102 Setups 2010 Inspections 3038\begin{array}{lcc}\text { Activity }&\text { Money Managers }&\text { Hospital Systems }\\\text { Pages } & 60,000 & 76,000 \\\text { Design changes } & 10 & 2 \\\text { Setups } & 20 & 10 \\\text { Inspections } & 30 & 38\end{array} When costs are assigned using the single cost driver,number of pages printed,then Hospital Systems ________.

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Definitions:

Shading

A visual technique used in drawing, painting, and digital graphics to create depth or suggest the volume of an object through gradients or variations in tone or color.

Text Effects

Visual enhancements applied to text within digital documents or graphics, such as shadow, reflection, glow, or emboss.

Typography Gallery

A collection or exhibition of various fonts, text styles, and typesetting practices.

Read Mode

A viewing option in document editors that provides a clean and simplified interface, focusing on text readability.

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