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Exercise 5-25 (Static) Activity Levels and Cost Drivers [LO 5-2] Shroeder Machine Shop has the following activities: Required: 1. Classify each of the activities
Exercise 5-25 (Static) Activity Levels and Cost Drivers [LO 5-2] Shroeder Machine Shop has the following activities: Required: 1. Classify each of the activities as a unit-level, batch-level, product-level, or facility-level activity. 2. Identify a proper cost driver for each activity. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Identify a proper cost driver for each activity. (If an activity can be classified with more than one selection, choose the option that contains ALL the appropriate classifications.) Activities Cost Drivers a. Machine operation b. Machine setup c. Production scheduling d. Materials receiving e. Research and development f. Machine maintenance g. Product design h. Parts administration i. Final inspection of a sample of products j. Materials handling Machine hours Number of setups or setup hours Number of production orders Number of material receipts; Number of purchase orders Number of products Number of machine hours; Number of machines Number of engineering change notices; Number of modifications; Number of products Number of parts; Number of products; Number of purchase orders < Required 1 Required 2
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