Answer the following question(s)using the information below.Ernsting Printers has contracts to complete weekly supplements required by forty-six customers.For the year 2018, manufacturing overhead cost estimates total $420,000 for an annual production capacity of 12 million pages.For 2018 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 cost drivers.The following information was gathered during the analysis:
During 2018, two customers, Wealth Managers and Health Systems, are expected to use the following printing services:

-Using pages printed as the only overhead cost driver, what is the manufacturing overhead cost estimate for Wealth Managers during 2018?
A)$2,500
B)$21,000
C)$1,500
D)$2,700
E)$2,100

Question

Answer the following question(s)using the information below.Ernsting Printers has contracts to complete weekly supplements required by forty-six customers.For the year 2018, manufacturing overhead cost estimates total $420,000 for an annual production capacity of 12 million pages.For 2018 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 cost drivers.The following information was gathered during the analysis:
  During 2018, two customers, Wealth Managers and Health Systems, are expected to use the following printing services:
 
-Using pages printed as the only overhead cost driver, what is the manufacturing overhead cost estimate for Wealth Managers during 2018?
A)$2,500 
B)$21,000 
C)$1,500 
D)$2,700 
E)$2,100

Quizplus · Accepted Answer

The manufacturing overhead cost estimate is calculated by multiplying the number of pages printed by the overhead cost per page. The correct choice is based on the given data and calculations.

Answer the Following Question(s)using the Information Below