Snow Cat manufactures snowmobiles and uses activity-based costing to allocate overhead cost. To produce snowmobiles, the company uses four activities. It sets up machines to produce batches of components. Assembly line employees assemble products. Completed snowmobiles are inspected for quality. Maintenance workers clean the factory after production finishes at the end of each day.

1. If \(\$ 30,000\) of Setup is used as an activity cost pool, which of the following would be used as a cost driver?

a. Square feet
b. Number of setups
c. Design modifications
d. Number of employees hired
2. If \(\$ 200,000\) of Assembly is used as an activity cost pool, which of the following would be used as a cost driver?
a. Direct labor hours
b. Square feet
c. Design modifications
d. Number of inspections
3. If \(\$ 40,000\) of Inspection is used as an activity cost pool, which of the following would be used as a cost driver?
a. Engineering hours
b. Tons recycled
c. Number of orders
d. Number of inspections
4. If \(\$ 10,000\) of Maintenance is used as an activity cost pool, which of the following would be used as a cost driver?
a. Engineering hours
b. Design modifications
c. Square feet
d. Number of orders