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Author Question: Excellent Printing has contracts to complete weekly supplements required by forty-six customers. For ... (Read 56 times)

Lisaclaire

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on: Mar 6, 2021
Excellent Printing has contracts to complete weekly supplements required by forty-six customers. For the year 2018, manufacturing overhead cost estimates total $840,000 for an annual production capacity of 12 million pages.

For 2018, Excellent 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 poolManufacturing overhead costsActivity level
Design changes$ 120,000200 design changes
Setups640,0004,000 setups
Inspections80,00016,000 inspections
Total manufacturing overhead costs$840,000

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

ActivityMoney ManagersHospital Systems
Pages60,00076,000
Design changes102
Setups2010
Inspections3038

When costs are assigned using the single cost driver, number of pages printed, then Hospital Systems ________.
◦ is fairly billed because resources are allocated uniformly to all jobs
◦ is grossly under billed for the job, while other jobs will be unfairly over billed
◦ will likely seek to do business with competitors
◦ will contribute too little to profits, and Wallace Printing will not want to accept additional work from the company
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by Lisaclaire on Mar 6, 2021

ansleighelindsey

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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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Lisaclaire

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Reply 2 on: Mar 6, 2021
Excellent

tkempin

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Reply 3 on: Yesterday
:D TYSM

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