Zeller Manufacturing Company produces four lines of high-quality lighting fixtures in a single manufacturing plant. Products are built to specific customer specifications. All products are made-to-order. Identify a cost object and a cost driver for each activity.

Cost object bank includes

customer order

each customer

not allocated

product line,

customer or product line.

Bank for cost driver:

Cannot be traced to product or customer; must be allocating using a reasonable method, for example, the number of units produced.

The number of purchase orders.

Product line

trace directly to the customer

trace to the product line or each customer order requiring design

trace to the product line, or each customer order requiring testing

	Activities	Cost Object	Cost Driver
1.	Product design	Product line	Trace to product line, or each custom order requiring design
2.	Product testing		Trace to product line, or each custom order requiring design
3.	Developing marketing plan for new products	Product line	Product line
4.	Purchasing, receiving, and inspecting materials for production	Product line	Number of purchase orders
5.	Manufacturing labor
6.	Setups for machine
7.	Product inspection, done for each product before packaging for shipment
8.	Packaging and shipping	Customer order
9.	Sales calls for new orders from existing customers		Trace directly to customer
10.	Processing customer orders
11.	Maintenance of plant and equipment		Cannot be traced to product or customer; must be allocated using some reasonable method, for example, the number of units produced
12.	Plant security	Not allocated	Cannot be traced to product or customer; must be allocated using some reasonable method, for example, the number of units produced