21)Corp is a printer for forty-six customers. For the year 2015, O/H cost estimates total $840,000 for anannual production capacity of 12 million pages. For 2015, it decided to evaluate the use of additionalcost pools. After analyzing O/H costs, it was determined that number of design changes, setups, andinspections are the primary O/H cost drivers. The following information was gathered during the analysis:Cost poolManufacturing overhead costs Activity level$ 120,000640,000300 design changes5,000 setups80,000$840,0008,000 inspectionsDesign changesSetupsInspectionsTotal manufacturing overhead costsDuring 2015, two customers, Money Managers and Hospital Systems, are expected to use the followingservices:ActivityPagesDesign changesSetupsInspectionsMoney Managers Hospital Systems60,0001076,000020103038Using pages printed as the only O/H cost driver, what is the O/H cost estimate for Money Managers for2015?

Overhead cost The cost of indirect expenses spent in the production process is referred to as…

21) Corp is a printer for forty-six customers. For the year 2015, O/H cost estimates total $840,000 for an annual production capacity of 12 million pages. For 2015, it decided to evaluate the use of additional cost pools. After analyzing O/H costs, it was determined that number of design changes, setups, and inspections are the primary O/H cost drivers. The following information was gathered during the analysis Cost pool Design changes Manufacturing overhead costs Activity level 300 design changes 5,000 setups 80,000 8,000 inspections Setups $840,000 Inspections Total manufacturing overhead costs $120,000 640,000 During 2015, two customers, Money Managers and Hospital Systems, are expected to use the following services: Activity Pages Design changes Setups Inspections Money Managers Hospital Systems 60,000 76,000 10 20 30 0 10 38 Using pages printed as the only O/H cost driver, what is the O/H cost estimate for Money Managers for 2015?

21) Corp is a printer for forty-six customers. For the year 2015, O/H cost estimates total $840,000 for an annual production capacity of 12 million pages. For 2015, it decided to evaluate the use of additional cost pools. After analyzing O/H costs, it was determined that number of design changes, setups, and inspections are the primary O/H cost drivers. The following information was gathered during the analysis Cost pool Design changes Manufacturing overhead costs Activity level 300 design changes 5,000 setups 80,000 8,000 inspections Setups $840,000 Inspections Total manufacturing overhead costs $120,000 640,000 During 2015, two customers, Money Managers and Hospital Systems, are expected to use the following services: Activity Pages Design changes Setups Inspections Money Managers Hospital Systems 60,000 76,000 10 20 30 0 10 38 Using pages printed as the only O/H cost driver, what is the O/H cost estimate for Money Managers for 2015?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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