Information processing activities retrieve data from storage, ...

[TVarnum]

Information processing activities retrieve data from storage, transform data, or file data.
  Indicate whether the statement is true or false

Question 2

Whitman Printing has contracts to complete weekly supplements required by forty-six customers. For the year 20X5, manufacturing overhead cost estimates total 840,000 for an annual production capacity of 12 million pages.
 
  For 2010, Whitman Printing 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  120,000 200 design changes
  Setups 640,000 4,000 setups
  Inspections 80,000 16,000 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 2
  Setups 20 10
  Inspections 30 38
 
  When costs are assigned using the single cost driver, number of pages printed, then Hospital Systems ________.
  A) is fairly billed because resources are allocated uniformly to all jobs
  B) is grossly under billed for the job, while other jobs will be unfairly over billed
  C) will likely seek to do business with competitors
  D) will contribute too little to profits, and Wallace Printing will not want to accept additional work from the company

[macybarnes]

Answer to Question 1

T

Answer to Question 2

Answer: C