Santana Corporation manufactures snowmobiles in its Blue Mountain, Wisconsin, plant. The following costs are budgeted for the first quarter’s operations.

Instructions Classify the above costs of Santana Corporation into activity cost pools using the following:
engineering, machinery, machine setup, quality control, factory utilities, maintenance.
Next, identify a cost driver that may be used to assign each cost pool to each line of snowmobiles.

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Machine setup, indirect materials Inspections Tests $ 4,000 16,000 4,000 Insurance, plant 110,000 Engineering design 140,000 Depreciation, machinery 520,000 Machine setup, indirect labor 20,000 Property taxes 29,000 Oil, heating 19,000 Electricity, plant lighting 21,000 Engineering prototypes 60,000 Depreciation, plant 210,000 Electricity, machinery 36,000 Machine maintenance wages 19,000