$10$

points

Skipped

Name of Budgeted Cost

Plant insurance

Testing raw materials

Manufacturing equipment setup

Quality inspections

Property taxes

Electricity, plant

Electricity, manufacturing equipment

Depreciation, plant

Depreciation, manufacturing equipment

Maintenance worker $($manufacturing equipment$)$

Indirect labor $($manufacturing equipment setup$)$

Design engineering

Required:

Assign each of the budgeted costs above to one of the following activity pools:

Engineering

Equipment setup

Quality control

Factory facilities

Manufacturing equipment

Compute the total cost of each pool.

Indicate whether the activities in each pool are unit, batch, product, or facility level.

Identify the most likely driver for each activity pool from the following list:

Number of inspections or tests

Square feet

Machine hours

Engineering hours

Number of setups

Use the following table to organize your answer. The engineering activity pool is done as an example. Other pools may have more than one cost item included.

$\backslash$table$[[$Activity Cost Pool,$1.$ Costs Included in Pool,$2.$ Total Cost of Pool,$\backslash$table$[[3.$ Unit, Batch, Product, or$],[$Facility$]],4.$ Cost Driver$],[$Engineering$,$Design engineering,$220,000,$Product,Engineering Hours$],[$Equipment Setup$],[],[$Equipment Setup Total,,$$,,],[$Quality Control$],[],[$Quality Control Total,,$$,,],[$Factory Facilities$],[],[$Factory Facilities Total,,$$,,],[$Manufacturing Equipment$],[$Manufacturing Equipment Total,,$$,,]]$