Question: Please provide the solution Its important Awhy Printing Ltd. has contracts to complete weekly supplements required by its customers, For the current year, manufacturing overhead
Please provide the solution Its important
Awhy Printing Ltd. has contracts to complete weekly supplements required by its customers, For the current year, manufacturing overhead cost estimates total $580,000 for an annual production capacity of 14,500,000 pages. Rogers 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: Two customers, Jackson Sports and Beaufort Travel, are expected to use the following printing services: Pages are a direct cost at $0.02 per page. Design costs per job average $1,500 and $1,700 for Jackson Sports and Beaufort Travel, respectively. Rogers Printing sets prices at 50.11 per page plus 120% of design costs. Assume that all costs are variable, Create a report containing the following: Prepare income statements in contribution margin format for both customers using: a. Traditional (simple) costing with overhesd applied on a page capacity basis b. Activity-based costing c. How much a page should Jackson Sports be charged if Rogers Printing wants to breakeven on this customer? Assume that manufacturing overhead costs are fixed and that they are allocated to customers based on pages sold as a percentage of production capacity; and, that design costs are also fixed. Note: The financials and calculations should be created in excel and then put in the report. It is important that the schedules be set up for easy changes in case of "what-if" scenarios. Awhy Printing Ltd. has contracts to complete weekly supplements required by its customers, For the current year, manufacturing overhead cost estimates total $580,000 for an annual production capacity of 14,500,000 pages. Rogers 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: Two customers, Jackson Sports and Beaufort Travel, are expected to use the following printing services: Pages are a direct cost at $0.02 per page. Design costs per job average $1,500 and $1,700 for Jackson Sports and Beaufort Travel, respectively. Rogers Printing sets prices at 50.11 per page plus 120% of design costs. Assume that all costs are variable, Create a report containing the following: Prepare income statements in contribution margin format for both customers using: a. Traditional (simple) costing with overhesd applied on a page capacity basis b. Activity-based costing c. How much a page should Jackson Sports be charged if Rogers Printing wants to breakeven on this customer? Assume that manufacturing overhead costs are fixed and that they are allocated to customers based on pages sold as a percentage of production capacity; and, that design costs are also fixed. Note: The financials and calculations should be created in excel and then put in the report. It is important that the schedules be set up for easy changes in case of "what-if" scenarios
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