ErnstingPrinters 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:

Cost pool

Manufacturingoverhead costs

Activity level

Design changes

$60,000

300 design changes

Setups

320,000

5,000 setups

Inspections

40,000

8,000 inspections

Total manufacturing overhead costs

$420,000

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

Activity

WealthManagers

HealthSystems

Pages

60,000

76,000

Design changes

10

0

Setups

20

10

Inspections

30

38

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

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

B) $180 per change, $76 per setup, $4 per inspection

C) $150 per change, $64 per setup, $4 per inspection

D) $180 per change, $76 per setup, $5 per inspection

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