Answer the Following Questions Using the Information Below:
Xylon Corp

question 44

Multiple Choice

Answer the following questions using the information below:
Xylon Corp. has contracts to complete weekly supplements required by forty-six customers. For the year 2015, manufacturing overhead cost estimates total $840,000 for an annual production capacity of 10 million pages.
For 2015, Xylon 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:
$\begin{array}{lrc}\text { Cost pool }&\text { Manufacturing overhead costs }&\text { Activity level }\\\text { Design changes } & \$ 160,000 & 200 \text { design changes } \\\text { Setups } & 670,000 & 4,000 \text { setups } \\\text { Inspections } & \underline{80,000} & 16,000 \text { inspections } \\\text { Total manufacturing overhead costs } & \$ 910,000 &\end{array}$ During 2015, two customers, Money Managers and Hospital Systems, are expected to use the following printing services:
$$\begin{array} { l r r } \text { Activity } & \text { Money Managers } & \text { Hospital Systems } \\\text { Pages } & 60,000 & 76,000 \\\text { Design changes } & 10 & 2 \\\text { Setups } & 20 & 10 \\\text { Inspections } & 30 & 38\end{array}$$
-If manufacturing overhead costs are considered one large cost pool and are assigned based on 10 million pages of production capacity,what is the cost driver rate?

• A) $0.750 per page
• B) $0.240 per page
• C) $0.670 per page
• D) $0.091 per page

---

Definitions:

Source Code

The human-readable instructions and statements written by programmers in a programming language which are then compiled into software applications.

Social

Pertaining to society or its organization, or interacting and engaging with others within a community or network.

Mobile CRM

A mobile version of customer relationship management technology that enables businesses to manage customer interactions and data from mobile devices.

Portable Devices

Electronic gadgets that are designed to be carried around easily, such as smartphones, laptops, and tablets.