Reference no: EM132603579
During 2019, two customers, World Makers and Happy Studios, are expected to use the following printing services:
Activity World Makers Happy Studios
Pages 60,000 76,000
Design changes 10 0
Setups 20 10
Inspections 30 38
Question 1: What is the cost driver rate if manufacturing overhead costs are considered one large cost pool and are assigned based on 12 million pages of production capacity?
a. $0.05 per page
b. $0.035 per page
c. $0.35 per page
d. $0.025 per page
e. $0.045 per page
Question 2: Using pages printed as the only overhead cost driver, what is the manufacturing overhead cost estimate for World Makers during 2019?
a. $2,500
b. $21,000
c. $1,500
d. $2,700
e. $2,100
Question 3: Assuming activity-cost pools are used, what are the activity-cost driver rates for design changes, setups, and inspections cost pools?
a. $200 per change, $64 per setup, $5 per inspection
b. $180 per change, $76 per setup, $4 per inspection
c. $150 per change, $64 per setup, $4 per inspection
d. $180 per change, $76 per setup, $5 per inspection
e. $200 per change, $5 per setup, $64 per inspection
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