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Author Question: VelshiPrinters has contracts to complete weekly supplements required by forty-six customers. For the ... (Read 66 times)

jeatrice

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on: Mar 6, 2021

Question 1

The fundamental cost objects of ABC are ________.
◦ activities
◦ cost drivers
◦ products
◦ services

Question 2

Velshi Printers has contracts to complete weekly supplements required by forty-six customers. For the year 2018, manufacturing overhead cost estimates total $1,500,000 for an annual production capacity of 10 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$100,000400 design changes
Setups1,300,0003,000 setups
Inspections100,00010,000 inspections
Total manufacturing overhead costs$1,500,000

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

ActivityMoney ManagersHospital Systems
Pages90,000106,000
Design changes13 0
Setups188
Inspections3038

What is the cost driver rate if manufacturing overhead costs are considered one large cost pool and are assigned based on 10 million pages of production capacity?
◦ $0.01 per page
◦ $0.15 per page
◦ $0.14 per page
◦ $0.13 per page
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by jeatrice on Mar 6, 2021

HandsomeMarc

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Reply #1 on: Mar 6, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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jeatrice

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Reply 2 on: Mar 6, 2021
:D TYSM

sailorcrescent

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Reply 3 on: Yesterday
Excellent

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