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Author Question: VelshiPrinters has contracts to complete weekly supplements required by forty-six customers. For the ... (Read 50 times)

pragya sharda

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on: Mar 6, 2021
Velshi Printers has contracts to complete weekly supplements required by forty-six customers. For the year 2018, manufacturing overhead cost estimates total $1,800,000 for an annual production capacity of 20 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:

Cost poolManufacturing overhead costsActivity level
Design changes$200,000400 design changes
Setups1,550,0002,000 setups
Inspections50,00011,000 inspections
Total manufacturing overhead costs$1,800,000

During 2018, two customers, Money Managers and Hospital Systems, are expected to use the following printing services:

ActivityMoney ManagersHospital Systems
Pages80,00096,000
Design changes13 0
Setups188
Inspections2937

Using the three cost pools to allocate overhead costs, what is the total manufacturing overhead cost estimate for Money Managers during 2018? (Do not round interim calculations. Round the final answer to the nearest cent.)
◦ $23,856.82
◦ $6,240.91
◦ $20,581.82
◦ $11,036.36
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by pragya sharda on Mar 6, 2021

jackie

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Reply #1 on: Mar 6, 2021
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pragya sharda

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Reply 2 on: Mar 6, 2021
Thanks for the timely response, appreciate it

TheDev123

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Reply 3 on: Yesterday
Wow, this really help

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