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Ernsting Printers has contracts to complete weekly supplements required by forty$-$six customers. For the year $20$X$5,$ manufacturing overhead cost estimates total $$420,000$ for an annual production capacity of $12$ million pages.

For $20$X$5$ 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:

Cost pool Manufacturing overhead costs Activity level

Design changes $ $60,000300$ design changes

Setups $320,0005,000$ setups

Inspections $40,0008,000$ inspections

Total manufacturing overhead costs $$420,000$

During $20$X$5,$ two customers, Wealth Managers and Health Systems, are expected to use the following printing services:

Activity Wealth Managers Health Systems

Pages $60,00076,000$

Design changes $100$

Setups $2010$

Inspections $3038$

Assuming activity$-$cost pools are used, what are the activity$-$cost driver rates for design changes, setups, and inspections cost pools?

Question $7$ options:

$$84$ per change, $$269$ per setup, $$21$ per inspection

$$200$ per change, $$64$ per setup, $$5$ per inspection

$$180$ per change, $$160$ per setup, $$3\mathrm{.}20$ per inspection

$$143$ per change, $$76$ per setup, $$10$ per inspection

none of the above.

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