Question
Identify activity cost pools and cost drivers. (LO 2), AN Santana Corporation manufactures snowmobiles in its...
Identify activity cost pools and cost drivers.
(LO 2), AN 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, plant |
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 |
|
Electricity, machinery |
36,000 |
|
Machine maintenance wages |
19,000 |
Instructions
Classify the above costs of Santana Corporation into activity cost pools using the following: engineering, machinery, machine setup, quality control, factory costs. Next, identify a cost driver that may be used to assign each cost pool to each line of snowmobiles.
Homework Answers
Answer #1
Answer given below in tabular format:
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