Options for Costs included in pool

Options for cost driver

Maintenance worker (manufacturing equipment) Manufacturing Equipment Setup Plant Insurance Property Taxes Quality Inspections Testing Raw Materials 1. Assign each of the budgeted costs above to one of the following activity 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 activity pool from the following list: - Number of inspections or tests - Square feet - Machine hours - Engineering hours - Number of setups Use the following table to organize your answer. The engineering activity pool is done as an example. Other pools may have more than one cost item included. Depreciation, manufacturing equipment Depreciation, Plant Electricity, manufacturing equipment Electricity, Plant Indirect labor (manufacturing equipment setup Engineering Hours Machine Hours Number of Inspections/ Tests Number of Setups Square Feet