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Ayala Company manufactures four products in a single production facility. The company uses activity-based costing. The company has identified the following activities through its activity
Ayala Company manufactures four products in a single production facility. The company uses activity-based costing. The company has identified the following activities through its activity analysis: (a) inventory control, (b) machine set-ups, (c) employee training, (d) quality inspections, (e) material ordering, (f) drilling operations, and (9) building maintenance. For each activity, name a cost driver that might be used to assign overhead costs to products. (a) Inventory control Number of parts or assemblies (b) Machine set-ups Number of set-ups (c) Employee training Number of employees (d) Quality inspections Number of inspections (e) Material ordering Number of purchase orders (f) Drilling operations Machine hours (9) Building maintenance Square footage occupied Number of inspections Machine hours Square footage occupied Number of parts or assemblies Number of set-ups Number of employees Number of purchase orders
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