Question

Identify a cost driver for office equipment (computer, printer, cartridge, paper, etc.) of an overhead activity...

Identify a cost driver for office equipment (computer, printer, cartridge, paper, etc.) of an overhead activity for a homeless shelter.

Homework Answers

Answer #1

The most appropriate or relevant cost driver for office equipment (computer, printer, cartridge, paper, etc) of an overhead activity for a homeless shelter can be NUMBER OF PROJECTS OR NUMBER OF MACHINE HOURS.

Reason being, the overhead cost of office equipments can be allocated based on number of projects as equipments are used for accomplishing different projects or it can be allocated based on machine hours, as these equipments are also a machinary. Though, any other cost driver can be used based on the circumstance.

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