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|
|?????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|
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?
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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