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2. (a) For the following categories of activities assign an appropriate cost driver from the list provided against each activity in TABLE I. Cost Drivers:

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2. (a) For the following categories of activities assign an appropriate cost driver from the list provided against each activity in TABLE I. Cost Drivers: Cost of Inspection/Test Machine use hours Direct Labour Hours Number of Purchase Orders Number of Production Runs Material Delivery/Invoices. Activities to produce product Cost Drivers Activity Centre 1 Machining Activity Centre 2 Machining Product Assembly Materials Procurement Activities Product Materials Purchased Material Reception/Storage Materials Issued/Production Run Support Activities Production Planning Machine Setting Up/Tooling Statistical Quality Control TABLE 1

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