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Question 1: Choosing activity cost drivers Choose the best cost driver for each pool: Salaries of production labor supervisors: O direct labor hours O machine
Question 1: Choosing activity cost drivers Choose the best cost driver for each pool: Salaries of production labor supervisors: O direct labor hours O machine hours setup hours O number of setups O number of units O number of new product designs Salaries of machine technicians (they repair the machines; on average, machines break down every 500 hours): direct labor hours O machine hours setup hours number of setups number of units number of new product designs Salaries of production support staff (they set up the machines before each production batch; each setup for product A requires 10 setup hours, and each setup for product B requires 20 setup hours): O direct labor hours O machine hours setup hours number of setups number of units number of new product designs Design department costs (they develop new products): O direct labor hours machine hours O setup hours O number of setups O number of units O number of new product designs Call center costs (they provide technical assistance to customers; on average, 5% of all units sold require some technical assistance): O direct labor hours O machine hours O setup hours O number of setups O number of units O number of new product designs
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