Answer the Following Questions Using the Information Below:
Gold Coast

Multiple Choice

Answer the following questions using the information below:
Gold Coast Printing has contracts to provide fortnightly advertising supplements to 94 customers.For the year 2018,manufacturing overhead cost estimates total $600 000 for an annual production capacity of 24 million pages.
For 2018,Gold Coast Printing decided to evaluate the use of additional cost pools.After analysing manufacturing overhead costs,it was determined that number of design changes,set-ups and inspections are the primary manufacturing overhead cost drivers.The following information was gathered during the analysis:
$\begin{array} { l r c } \text { Cost Pool } & \text { Manufacturing Overhead Costs } & \text { Activity Level } \\ \text { Design changes } & \$ 80000 & 200 \text { design changes } \\ \text { Set-ups } & 400000 & 4000 \text { set-1ps } \\ \text { Inspections } & 120000 & 16000 \text { inspections } \\ \text { Total manufacturing overhead costs } & \$ 600000 & \end{array}$

During 2018, two customers, Wealth Managers and Health Systems, are expected to use the following printing services:

$\begin{array} { l c c } \text { Activity } & \text { Wealth Managers } & \text { Health Systems } \\ \text { Pages } & 60000 & 76000 \\ \text { Design changes } & 10 & 2 \\ \text { Set-ups } & 20 & 10 \\ \text { Inspections } & 30 & 38 \end{array}$
-Assuming activity-cost pools are used,what are the activity-cost driver rates for design changes,set-ups and inspections cost pools?

A) $300 per change,$80 per set-up,$2.50 per inspection
B) $210 per change,$105 per set-up,$26.25 per inspection
C) $250 per change,$200 per set-up,$3.75 per inspection
D) $400 per change,$100 per set-up,$7.50 per inspection