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[answered] Baldwin Printers has contracts to complete weekly supplemen


Baldwin Printers has contracts to complete weekly supplements required by fortyminus?two customers. For the year?2011, manufacturing overhead cost estimates total$1,840,000 for an annual production capacity of 20 million pages.

For 2011 Baldwin 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 Activity level
Design changes $ 520,000 400 design changes
Setups 1,040,000 8,000 setups
Inspections ?280,000 14,000 inspections
?????Total manufacturing overhead costs $1,840,000


During?2011, two?customers, Wellington Drugs and Home?Again, are expected to use the following printing?services:

Activity Wellington Drugs Home Again
Pages Printed 90,000 56,000
Design changes 7 4
Setups 10 10
Inspections 20 18


What is the cost driver rate if manufacturing overhead costs are considered one large cost pool and are assigned based on 20 million pages of production?capacity?

A.?
Baldwin Printers has contracts to complete weekly supplements required by fortyminus?two customers. For the year 2011

 

million pages. For 2011 Baldwin Printers has decided to evaluate the use of...

 


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