What is the cost driver rate if manufacturing overhead costs are ...

[ahriuashd]

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?
 
  Velshi Printers has contracts to complete weekly supplements required by forty-six customers. For the year 2015, manufacturing overhead cost estimates total 840,000 for an annual production capacity of 12 million pages.
 
  For 2015 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 pool Manufacturing overhead costs Activity level
  Design changes  120,000 300 design changes
  Setups 640,000 5,000 setups
  Inspections 80,000 8,000 inspections
   Total manufacturing overhead costs 840,000
 
  During 2015, 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 0
  Setups 20 10
  Inspections 30 38
 
  A) 0.10 per page
  B) 0.07 per page
  C) 0.70 per page
  D) 0.05 per page

Question 2

A(n) ___________________ ___________ is a collection of related characters that comprise an attribute, such as a customer number or name.
 Fill in the blank(s) with correct word

[katheyjon]

Answer to Question 1

Answer: B

Answer to Question 2

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