Question:Assignment # 1 Whitman Printing Ltd. has contracts to complete
weekly supplements required by its' customers....
Question
Assignment # 1 Whitman Printing Ltd. has contracts to complete
weekly supplements required by its' customers. For the current
year, manufacturing overhead cost estimates total $336,000 for an
annual production capacity of 12 million pages. Whitman Printing
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: Manufacturing Cost pool overhead
costs Activity level Design changes $ 60,000 200 design changes
Setups 96,000 8,000 setups Inspections 180,000 12,000 inspections
Total manufacturing overhead costs $336,000 Two customers, Money
Managers and Hospital Systems, are expected to use the following
printing services: Activity Money Managers Hospital Systems Pages
80,000 96,000 Design changes 10 0 Setups (one per job) 50 12
Inspections 40 12 Designs (one per job) 50 12 Pages are a direct
cost at $0.03 per page. Design costs per job average of $1,000 and
$1,200 for Money Managers and Hospital Systems, respectively.
Whitman Printing sets prices at $0.10 per page plus 120% of design
costs. Assume that all costs are variable. Required: Prepare income
statements in contribution margin format for both customers using:
a. Traditional (simple) costing with overhead applied on a page
capacity basis b. Activity-based costing c. How much a page should
Money Managers be charged if Whitman Printing wants to breakeven on
this customer? Assume that manufacturing overhead costs are fixed
and that they are allocated to customers based on pages sold as a
percentage of production capacity; and, that design costs are also
fixed.
Assignment # 1 Whitman Printing Ltd. has contracts to complete
weekly supplements required by its' customers....
Search -sign 12 ACC 420 - Assignment #1 (4) - Saved to this PC Layout References Mailings Review A A A A Аавьсср давbccDr AaBbct Аавьссс Аав 2. AE o Spac. Heading 1 Heading 2 Title P Paragraph aragraph Whitman Printing Ltd. Her O Whitman Printing Ltd. has contracts to complete weekly supplements required by its customers. For the current year, manufacturing overhead cost estimates total $336,000 for an annual production capacity of 12 million pages. T Normal Font m Whatman Printing 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: Manufacturing Cost pool overhead costs Design changes $ 60,000 Setups 96,000 Inspections 150.000 Total manufacturing overhead costs $886.000 Activity level 200 design changes 5.000 setups 12.000 inspections Two customers, Money Managers and Hospital Systems, are expected to use the following printing services: Money Managers 50,000 Hospital Systems 96.000 Activity Pages Design changes Setups (one per job) Inspections Designs fone per job) Pages are a direct cost at $0.03 per page. Desian costs per job anerage $1.000 and 51.200 for Money Managers and Hospital Sustems, respectively utman Printing sets prices at 50.10 per page plus 120%
Corp. has contracts to complete weekly supplements required by forty-six customers. For the year 2018, manufacturing overhead cost estimates total $900,000 for an annual production capacity of 10 million pages. For 2018, Xylon 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 Design changes...
Velshi Printers has contracts to complete weekly supplements required by forty-six customers. For the year 2018, manufacturing overhead cost estimates total $1,500,000 for an annual production capacity For 2018 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 Design changes $100,000...
wed Score: 0 of 10 pts 8 of 10 (6 complete) 5.5-29a Question Help Velshi Printers has contracts to complete weekly supplements required by forty-six customers. For the year 2018, manufacturing overhead cost estimates total $2,700,000 for an annual production capacity of 18 million pages. For 2018 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...
GBC Printing has contracts to complete weekly supplements required by forty-six customers. For the year 2016, manufacturing overhead cost estimates total $420,000 for an annual production capacity of 10 million pages. For 2016 GBC Printing 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 poolManufacturing overhead costsActivity levelDesign changes$60,000200 design changesSetups320,0004,000...
Hello, i completed some homework questions and wanted to
compare. The following questions are below. Thanks
1)
Bill Cobb Corporation had the following activities, pooled
costs, and physical flow of driver units. The company uses
activity-based costing.
Activities Pooled
Costs Physical Flow of
Driver Units
Account inquiry (hours)
$400,000
5,000
Account billing (lines)
$280,000
2,000,000
Account verification (accounts)
$150,000
20,000
Correspondence (letters)
$50,000
2,000
The above activities are used by departments X and Y as
follows:
X
Y
Account inquiry...
Hello, I am doing homework questions and was hoping to compare
answers. Thanks,
1) Ernsting Printers has contracts to complete weekly
supplements required by forty-six customers. For the year 2015,
manufacturing overhead cost estimates total $420,000 for an annual
production capacity of 12 million pages.
For 2015 Ernsting 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...
1. Milton Manufacturing has three departments (or activities) in its manufacturing process: machine setups, machining, and inspections. Estimated annual overhead cost for each activity is $80,000, 162,500, and $28,000, respectively. The expected annual use for each activity is 1,000 setups, 12,500 machine hours, and 875 inspections Compute the overhead rate for each activity Machine Setups Machinin Inspections 2. Wilson Bradley & Associates, a law firm, uses Activity Based Costing for assigning overhead costs. The following budgeted data for each of...
Aniline simple job-costing system has two direct-cost
categories (direct materials and direct labor) and a single
indirect-cost pool.
Aniline operates at capacity and allocates all indirect costs
using printing machine-hours as the allocation base.
Aniline is concerned about the accuracy of the costs assigned to
standard and special jobs and therefore is planning to implement
an activity-based costing system.
Aniline ABC system would have the same direct-cost categories
as its simple costing system. However, instead of a single
indirect-cost pool...
For many years, Sinclair Graphic Design has provided design and digital printing services for indoor banners. The nylon banners, which come in a standard size, are used for a variety of purposes, including trade shows, sporting events, and other promotional activities. Three years ago, the company introduced a second printing and production service for outdoor banners that has become increasingly popular. The outdoor banners are a more complex product than the indoor banners, requiring weatherproof vinyl materials and a different...
Home Insert A Page Layout B С D G H Cause-and-Effect Relationship Between Allocation Base and Activity Cost Total Standard Job Special Job 400 200 $ 600 $ 750 $ 100 $ 125 $ 90 $ 100 10 10 $ 75,000 Indirect costs of operating printing machines increase with printing machine hours 7 1 2 Number of printing jobs 3 Price per job 4 Cost of supplies per job 5 Direct labor costs per job 6 Printing machine-hours per job...