Velshi Printers Has Contracts to Complete Weekly Supplements Required by Forty-Six

question 69

Multiple Choice

Velshi Printers has contracts to complete weekly supplements required by forty-six customers.For the year 2018,manufacturing overhead cost estimates total $1,500,000 for an annual production capacity of 10 million pages.
For 2018 Velshi Printers has 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 2018,two customers,Money Managers and Hospital Systems,are expected to use the following printing services:

What is the cost driver rate if manufacturing overhead costs are considered one large cost pool and are assigned based on 10 million pages of production capacity?

• A)$0.01 per page
• B)$0.15 per page
• C)$0.14 per page
• D)$0.13 per page

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Definitions:

Bar Graphs

A visual representation of data using bars of varying heights or lengths to show the values of different categories.

Leaf

In botany, this refers to the flat, thin plant organ specialized for photosynthesis; in data visualization, particularly in a "tree" structure, it represents an endpoint or a data point that does not branch out further.

Stem

In data visualization, the ‘stem’ refers to a part of a stem-and-leaf plot, which represents the leading digits of the data points, while the leaves represent the final digits.

Leaf

In the context of a stem-and-leaf plot, represents the last digit of a number and is used to visualize data distributions.