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The following are six cost pools established for a company using activity-based costing. The pools are related to the company's products using cost drivers. For
The following are six cost pools established for a company using activity-based costing. The pools are related to the company's products using cost drivers.
For each of the preceding cost pools, identify a possible cost driver. (Each answer is used only once, select the best answer for each cost pool.)
- Inspection of raw materials: ( Number of Recipients, Machine Hours, $ value of raw material, Square footage, # of inspections, # of setups)
- Production equipment repairs and maintenance: ( Number of Recipients, Machine Hours, $ value of raw material, Square footage, # of inspections, # of setups)
- Raw material Shortage: ( Number of Recipients, Machine Hours, $ value of raw material, Square footage, # of inspections, # of setups)
- Plant heat water, light, and power: ( Number of Recipients, Machine Hours, $ value of raw material, Square footage, # of inspections, # of setups)
- Finished Product Quality Control: ( Number of Recipients, Machine Hours, $ value of raw material, Square footage, # of inspections, # of setups)
- product Line setup: ( Number of Recipients, Machine Hours, $ value of raw material, Square footage, # of inspections, # of setups)
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