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Business, 08.04.2021 17:40 Dianar4308
Velshi Printers has contracts to complete weekly supplements required by forty−six customers. For the year 2020, manufacturing overhead cost estimates total $1,680,000 for an annual production capacity of 12 million pages. For 2020 Velshi 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 costs Activity level Design changes $120,000 500 design changes Setups 1,490,000 5,000 setups Inspections 70,000 9,000 inspections Total manufacturing overhead costs $1,680,000 During 2020, two customers, Money Managers and Hospital Systems, are expected to use the following printing services: Activity Money Managers Hospital Systems Pages 90,000 106,000 Design changes 15 0 Setups 18 8 Inspections 27 35 Using pages printed as the only overhead cost driver, what is the manufacturing overhead cost estimate for Money Managers during 2020?
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Velshi Printers has contracts to complete weekly supplements required by forty−six customers. For th...
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