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Rojas Vineyards in Oakville, California, produces three varieties of wine: merlot, viognier, and pinot noir. The winemaster, Russel Hansen, has identified the following activities as
Rojas Vineyards in Oakville, California, produces three varieties of wine: merlot, viognier, and pinot noir. The winemaster, Russel Hansen, has identified the following activities as cost pools for accumulating overhead and assigning it to products. For each of Rojas Vineyards activity cost pools, identify a probable cost driver that might be used to assign overhead costs to its three wine varieties. CHOOSE FROM THE LIST AS SEEN IN THE SCREENSHOT
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Acitivity Cost Pools Spraying. The vines are sprayed with organic pesticides for protection against insects and fungi. Harvesting. The grapes are hand-picked, placed in carts, and transported to the crushers. Stemming and crushing. Cartfuls of bunches of grapes of each variety are separately loaded into machines that remove stems and gently crush the grapes. Pressing and filtering. The crushed grapes are transferred to presses that mechanically remove the juices and filter out bulk and impurities. Fermentation. The grape juice, by variety, is fermented in either stainless-steel tanks or oak barrels. Aging. The wines are aged in either stainless-steel tanks or oak barrels for one to three years depending on variety. Bottling and corking. Bottles are machine-filled and corked. Labeling and boxing. Each bottle is labeled, as is each nine-bottle case, with the name of the vintner, vintage, and variety. Storing. Packaged and boxed bottles are stored awaiting shipment. Shipping. The wine is shipped to distributors and private retailers. Heating and air-conditioning of plant and offices. Maintenance of production equipment. Repairs, replacements, and general maintenance are performed in the off-season. Cost Drivers Gallons of chemicals Square feet Number of bottles Number of shipments Gallons of wine or months of aging Number of carts Machine hours Number of boxes Gallons of juice Number of carts or labor hours + + + + +Step by Step Solution
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