E4-2 (Static) Assigning Costs to Activity Cost Pools, Identifying a Cost Driver (LO 4-2, 4-3] 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 Budgeted Cost $ 86, 100 45,000 7,200 57,000 23,000 14,000 51,250 18,800 36,700 22,500 8,300 220,000 . . Required: 1. Assign each of the budgeted costs above to one of the following activity cost pools: Engineering Equipment setup Quality control Factory facilities Manufacturing equipment 2. Compute the total cost of each pool. 3. Indicate whether the activities in each pool are unit, batch, product, or facility level. 4. Identify the most likely driver for each cost pool from the following list: Number of inspections/tests Con FAAR 3. Indicate whether the activities in each pool are unit, batch, product, or facility level. 4. Identify the most likely driver for each cost pool from the following list: Number of inspections/tests Square feet Machine hours Engineering hours Number of setups Use the following table to organize your answer. The engineering cost pool is done as an example. Other pools may have more than one cost item included 1. Costs Included in Pool Activity Cost Pool Engineering 2. Total Cost of Pool 3. Unit, Batch, Product or Facility 220,000 Product 4. Cost Driver Engineering Hours Design engineering un Equipment Setup $ 0 Quality Control $ 0 Factory Facilities Use the following table to organize your answer. The engineering cost pool is done as an example. Other pools may have more than one cost item included. 4. Cost Driver Activity Cost Pool Engineering 1. Costs Included in Pool Design engineering 2. Total Cost of Pool 3. Unit, Batch, Product, or Facility $ 220,000 Product Engineering Hours Equipment Setup 0 Quality Control $ 0 Factory Facilities $ 0 Manufacturing Equipment D
