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Listed are the eight activity cost pools used by Charvez Corporation. Suggest an appropriate activity base for allocating each of the activity cost pools to

Listed are the eight activity cost pools used by Charvez Corporation. Suggest an appropriate activity base for allocating each of the activity cost pools to products. (Consider each cost pool independently.)

a.Production set-up costs

  • The percent of total square feet in the materials warehouse occupied by each product line (number of component parts per product line)
  • The number of set-ups required (or, perhaps, number of production runs)
  • The number of inspections related to each product line (rate of defects)
  • The number of purchase orders related to each product line
  • The number of design or engineering change orders generated
  • The total machine hours required to manufacture each product line
  • The number of work orders related to each product line
  • The square feet of production space occupied by each product line

b.Heating costs

  • The total machine hours required to manufacture each product line
  • The number of design or engineering change orders generated
  • The number of inspections related to each product line (rate of defects)
  • The percent of total square feet in the materials warehouse occupied by each product line (number of component parts per product line)
  • The number of work orders related to each product line
  • The square feet of production space occupied by each product line
  • The number of purchase orders related to each product line
  • The number of set-ups required (or, perhaps, number of production runs)
  • The number of purchase orders related to each product line

c.Machinery power costs

  • The percent of total square feet in the materials warehouse occupied by each product line (number of component parts per product line)
  • The number of inspections related to each product line (rate of defects)
  • The number of design or engineering change orders generated
  • The total machine hours required to manufacture each product line
  • The number of work orders related to each product line
  • The square feet of production space occupied by each product line
  • The number of purchase orders related to each product line
  • The number of set-ups required (or, perhaps, number of production runs)

d.Purchasing department costs

  • The square feet of production space occupied by each product line
  • The number of work orders related to each product line
  • The number of purchase orders related to each product line
  • The percent of total square feet in the materials warehouse occupied by each product line (number of component parts per product line)
  • The number of design or engineering change orders generated
  • The total machine hours required to manufacture each product line
  • The number of set-ups required (or, perhaps, number of production runs)
  • The number of inspections related to each product line (rate of defects)

e.Maintenance costs

  • The number of inspections related to each product line (rate of defects)
  • The number of purchase orders related to each product line
  • The percent of total square feet in the materials warehouse occupied by each product line (number of component parts per product line)
  • The number of set-ups required (or, perhaps, number of production runs)
  • The number of work orders related to each product line
  • The total machine hours required to manufacture each product line
  • The number of design or engineering change orders generated
  • The square feet of production space occupied by each product line

f.Design and engineering costs

  • The total machine hours required to manufacture each product line
  • The number of purchase orders related to each product line
  • The percent of total square feet in the materials warehouse occupied by each product line (number of component parts per product line)
  • The number of work orders related to each product line
  • The square feet of production space occupied by each product line
  • The number of design or engineering change orders generated
  • The number of set-ups required (or, perhaps, number of production runs)
  • The number of inspections related to each product line (rate of defects)

g.Materials warehouse costs

  • The number of inspections related to each product line (rate of defects)
  • The number of purchase orders related to each product line
  • The number of set-ups required (or, perhaps, number of production runs)
  • The number of design or engineering change orders generated
  • The square feet of production space occupied by each product line
  • The total machine hours required to manufacture each product line
  • The percent of total square feet in the materials warehouse occupied by each product line (number of component parts per product line)
  • The number of work orders related to each product line

h.Product inspection costs

  • The number of inspections related to each product line (rate of defects)
  • The number of set-ups required (or, perhaps, number of production runs)
  • The number of design or engineering change orders generated
  • The total machine hours required to manufacture each product line
  • The number of work orders related to each product line
  • The square feet of production space occupied by each product line
  • The percent of total square feet in the materials warehouse occupied by each product line (number of component parts per product line)
  • The number of purchase orders related to each product line

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