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

question 102

Multiple Choice

Velshi Printers has contracts to complete weekly supplements required by forty-six customers.For the year 2018,manufacturing overhead cost estimates total $1,760,000 for an annual production capacity of 16 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:

Assuming activity-cost pools are used,what are the activity-cost driver rates for design changes,setups,and inspections cost pools?

• A)$800.00 per change,$306.00 per setup,$10.00 per inspection
• B)$800.00 per change,$14.00 per setup,$218.57 per inspection
• C)$32.00 per change,$10.00 per setup,$306.00 per inspection
• D)$22.86 per change,$306.00 per setup,$350 per inspection

---

Definitions:

Foot-In-The-Door Technique

A method for inducing compliance in which a small request is followed by a larger request.

Social Loafing

The phenomenon where individuals exert less effort to achieve a goal when they work in a group than when they work alone.

Triangular Model of Love

A theory proposed by psychologist Robert Sternberg that describes love in terms of three components: intimacy, passion, and commitment.

Intimacy

The close, familiar, and usually affectionate or loving personal relationship with another person or group.