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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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