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Galavic Corporation manufactures snowmobiles in its Blue Mountain, Wisconsin plant. The following costs are budgeted for the first quarter's operations. Machine setup, indirect materials $
Galavic Corporation manufactures snowmobiles in its Blue Mountain, Wisconsin plant. The following costs are budgeted for the first quarter's operations. Machine setup, indirect materials $ 4,000 Inspections 16,000 Tests 4,000 Insurance, plant 110,000 Engineering design 140,000 Depreciation, machinery 520,000 Machine setup, indirect labor 20,000 Property taxes 29,000 Oil, heating 19,000 Electricity, plant lighting 21,000 Engineering prototypes 60,000 Depreciation, plant 210,000 Electricity, machinery 36,000 Custodial (machine maintenance) wages 19,000 Classify the above costs of Galavic Corporation into activity cost pools using the following: engineering, machinery, machine setup, quality control, factory utilities, maintenance. Next, identify a cost driver that may be used to assign each cost pool to each line of snowmobiles. Budgeted Cost Activity Cost Pool Cost Driver Machine setup, indirect materials engineeringmachineryquality controlfactory utilitiesmaintenancemachine setup number of setupsengineering hoursnumber of tests or inspectionssquare feet or machine hoursmachine hoursnumber of machines or machine hours Inspections maintenancequality controlengineeringmachinerymachine setupfactory utilities machine hoursnumber of tests or inspectionsengineering hourssquare feet or machine hoursnumber of machines or machine hoursnumber of setups Tests factory utilitiesmachinerymaintenancemachine setupengineeringquality control machine hoursengineering hoursnumber of machines or machine hoursnumber of tests or inspectionsnumber of setupssquare feet or machine hours Insurance, plant engineeringmachineryquality controlmaintenancefactory utilitiesmachine setup engineering hoursmachine hoursnumber of machines or machine hourssquare feet or machine hoursnumber of tests or inspectionsnumber of setups Engineering design factory utilitiesengineeringmachinerymachine setupquality controlmaintenance number of machines or machine hoursnumber of tests or inspectionsmachine hoursengineering hourssquare feet or machine hoursnumber of setups Depreciation, machinery machine setupmachineryfactory utilitiesengineeringquality controlmaintenance number of setupssquare feet or machine hoursnumber of tests or inspectionsmachine hoursnumber of machines or machine hoursengineering hours Machine setup, indirect labor machine setupmaintenancefactory utilitiesengineeringmachineryquality control square feet or machine hoursengineering hoursnumber of setupsmachine hoursnumber of machines or machine hoursnumber of tests or inspections Property taxes quality controlengineeringmachine setupmachinerymaintenancefactory utilities number of tests or inspectionsnumber of setupsengineering hoursmachine hourssquare feet or machine hoursnumber of machines or machine hours Oil, heating maintenancefactory utilitiesengineeringmachineryquality controlmachine setup number of tests or inspectionsengineering hoursnumber of setupsmachine hoursnumber of machines or machine hourssquare feet or machine hours Electricity, plant lighting factory utilitiesmaintenanceengineeringmachinerymachine setupquality control machine hoursnumber of machines or machine hoursnumber of setupssquare feet or machine hoursengineering hoursnumber of tests or inspections Engineering prototypes machinerymachine setupquality controlfactory utilitiesmaintenanceengineering engineering hoursnumber of tests or inspectionssquare feet or machine hoursnumber of setupsnumber of machines or machine hoursmachine hours Depreciation, plant machine setupengineeringmachineryfactory utilitiesquality controlmaintenance number of setupsengineering hoursnumber of machines or machine hoursmachine hoursnumber of tests or inspectionssquare feet or machine hours Electricity, machinery machineryengineeringmachine setupquality controlmaintenancefactory utilities number of machines or machine hoursmachine hoursengineering hoursnumber of setupssquare feet or machine hoursnumber of tests or inspections Custodial (machine maintenance) wages factory utilitiesengineeringmachinerymachine setupmaintenancequality control number of machines or machine hoursengineering hoursnumber of tests or inspectionsnumber of setupsmachine hourssquare feet or machine hours Click here if you would like to Show Work for this question
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