Question
Santana corporation manufactures snowmobiles in its Blue Mountain, Wisconsin, plant. The following costs are budgeted for the first quarter's operations. Machine $ 4,000 Inspections 16,000
Santana corporation manufactures snowmobiles in its Blue Mountain, Wisconsin, plant. The following costs are budgeted for the first quarter's operations.
Machine $ 4,000
Inspections 16,000
Test 4,000
Insurance, plant 1 110,000
Engineering design 140,000
Depreciation, machinery 520,000
Machine setup, indirect labor 20,000
Property taxes 29,000
Oil, heating 19,000
Electricity, plant lighting 21,000
Engineering prototypes 60,000
Depreciation, plant 210,000
Electrical machinery 36,000
Machine Maintenance wages 19,000
Instructions
Classify the above cost of Santana Corporation into activity cost pools using the following: engineering. machinery, machine setup, quality control, factory utilities, maintenance. Next, identify a cost driver that may be used to assign each cost pool to each line of snowmobiles
Step by Step Solution
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Step: 2
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Step: 3
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