What are the activity-cost driver rates for design changes

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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

Reference no: EM132603579

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