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Santana 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
Santana 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, factory 110,000 Engineering design 140,000 Depreciation, machinery 520,000 Machine setup, indirect labor 20,000 Property taxes on factory 29,000 Factory heating 19,000 Electricity, plant lighting 21,000 Engineering prototypes 60,000 Depreciation, factory 210,000 Electricity, machinery 36,000 Machine maintenance wages 19,000 Classify the above costs of Santana Corporation into activity cost pools using the following: engineering, machinery, machine setup, quality control, factory costs. Budgeted Costs Activity Cost Pool Machine setup, indirect materials Inspections Tests Insurance, plant Engineering design Depreciation, machinery Machine setup, indirect labor Property taxes Oil, heating Electricity, plant lighting Engineering prototypes Depreciation, plant Electricity, machinery Machine maintenance wages Identify a cost driver that may be used to assign each cost pool to each line of snowmobiles. Budgeted Costs Machine setup, indirect materials Inspections Tests Insurance, plant Engineering design Depreciation, machinery Machine setup, indirect labor Property taxes Oil, heating Electricity, plant lighting Engineering prototypes Depreciation, plant Electricity, machinery Machine maintenance wages Cost Driver Classify the above costs of Santana Corporation into activity setup, quality control, factory costs. Budgeted Costs Machine setup, indirect materials Activity Cost Pool Inspections Tests Engineering Machinery Maintenance Quality Control Machine Setup Factory Costs Insurance, plant Identify a cost driver that may be used to assign each cost pool to each line of si Budgeted Costs Cost Driver Machine setup, indirect materials Direct Labor Hours Inspections Tests Insurance, plant Engineering design Depreciation, machinery Number of Tests or Inspections Number of Purchase Orders Number of Setups Square Feet or Machine Hours Engineering Hours Number of Parts or Assemblies Number of Employees Machine Hours Number of Requisitions
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