ACC355 quiz 2 Velshi Printers has contracts to complete weekly advertising supplements required by forty-six customers.
Question;ACC 355-001;? Quiz #2 (Winter 2013);(Take;Home Quiz);Velshi;Printers has contracts to complete weekly advertising supplements required;by forty-six customers. For the year 2010, manufacturing overhead cost;estimates total $840,000 for an annual production capacity of 12 million pages.;For;2010 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;Cost;pool Manufacturing;overhead costs Activity;level;Design changes $;120,000 300 design changes;Setups 640,000 5,000 setups;Inspections 80,000 8,000 inspections;Total manufacturing overhead costs $840,000;During;2010, two customers, Money Managers and Hospital Systems, are expected to use;the following printing services;Activity Money;Managers Hospital Systems;Pages 60,000 76,000;Design changes 10 0;Setups 20 10;Inspections 30 38;1);Using ABC, calculate the;activity driver rate for each for each overhead activity.;2);Using ABC, calculate the total;amount of overhead that will be allocated to each of the two customers given.;3);Using ABC, calculate the;overhead cost per page for each of the two customers given.
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