1. Velshi Printers has contracts to complete weekly supplements required by forty-six customers. For the year 2015, manufacturing overhead cost estimates total $840,000 for an annual production capacity of 12 million pages.

For 2015, Velshi Printers has decided to evaluate the use of additional cost pools. After analyzing manufacturing overhead costs, it was determined that the 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
Design changes	$120,000	300 design changes
Setups	640,000	5,000 setups
Inspections	80,000	8,000 inspections
Total manufacturing overhead costs	$840,000

During 2010, two customers, Money Managers and Hospital Systems, are expected to use the following printing services:

Activity	Money Managers	Hospital Systems
Pages	60,000	76,000
Design changes	10	0
Setups	20	10
Inspections	30	38

Using the three cost pools to allocate overhead costs, what is the total manufacturing overhead cost estimate for Money Managers during 2015?

1. $10,192
2. $6,860
3. $13,700
4. $6,500
5. None of the above