Activities Category Potential Cost Driver Factory utilities Facility Number of Square Feet Machine setups Batch Number of Setups Product Research and Development Hours Machine Hours Research and development for a new product Sanding rough edges of the product Unit Packaging the product for shipment Product or Unit Number of Units Developing new packaging for a new product line Product Number of Development Hours Maintenance on equipment Facility Machine Hours Unit Direct Labor Hours Assembling the product's component parts Materials handling costs Unit or Batch Number of Material Moves Quality control testing Unit or Batch Number of Quality Inspections
Activities Category Potential Cost Driver Factory utilities Facility Number of Square Feet Machine setups Batch Number of Setups Product Research and Development Hours Machine Hours Research and development for a new product Sanding rough edges of the product Unit Packaging the product for shipment Product or Unit Number of Units Developing new packaging for a new product line Product Number of Development Hours Maintenance on equipment Facility Machine Hours Unit Direct Labor Hours Assembling the product's component parts Materials handling costs Unit or Batch Number of Material Moves Quality control testing Unit or Batch Number of Quality Inspections
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 1TIF: Ethics in Action The controller of Tri Con Global Systems Inc. has developed a new costing system...
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Hello, everything is correct except for the highlighted line. The cost driver is correct but I can't get the right category for it.
I've tried Unit, Product, Product or Unit and none of those are correct.
Please help!
Expert Solution
Step 1 General Introduction
Activity based costing is an accounting method that allocates manufacturing overheads based on the associated variables of the expense incurred. It influences the cost of labor, maintenance and other variable costs
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