Activities and Cost Drivers Activity Cost Driver Fringe benefits Electricity Square feet Direct labor hours Machine hours Depreciation Machine maintenance Heat and air conditioning

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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**EA6**

**LO 6.2** Match the activity with the most appropriate cost driver.

**Activities and Cost Drivers**

| **Activity**              | **Cost Driver**      |
|---------------------------|----------------------|
| Fringe benefits           | Square feet          |
| Electricity               | Direct labor hours   |
| Depreciation              | Machine hours        |
| Machine maintenance       |                      |
| Heat and air conditioning |                      |

**Table 6.5**

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Transcribed Image Text:--- **EA6** **LO 6.2** Match the activity with the most appropriate cost driver. **Activities and Cost Drivers** | **Activity** | **Cost Driver** | |---------------------------|----------------------| | Fringe benefits | Square feet | | Electricity | Direct labor hours | | Depreciation | Machine hours | | Machine maintenance | | | Heat and air conditioning | | **Table 6.5** ---
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