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Wallace Printing 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$5$ Wallace 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 pool Manufacturing overhead costs Activity level

Design changes $ $60,000200$ design changes

Setups $320,0004,000$ setups

Inspections $40,00016,000$ 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 $102$

Setups $2010$

Inspections $3038$

If manufacturing overhead costs are considered one large cost pool and are assigned based on $12$ million pages of production capacity, what is the cost driver rate?

Question $5$ options:

$$0\mathrm{.}035$ per page

$$0\mathrm{.}05$ per page

$$0\mathrm{.}25$ per page

$$0\mathrm{.}025$ per page

none of the above.

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