Activity Levels and Cost Drivers Zeller Manufacturing Company produces four lines of highquality lighting fixtures in a single manufacturing plant. Products are built to specific customer specifications. All products are made-to-order. Management of the plant lists the following as the keyactivities at the plant:1. Product design2. Product testing3. Developing marketing plan for new products4. Purchasing, receiving, and inspecting materials for production5. Manufacturing labor6. Setups for machine7. Product inspection, done for each product before packaging for shipment8. Packaging and shipping9. Sales calls for new orders from existing customers10. Processing customer orders11. Maintenance of plant and equipment12. Plant securityRequired Identify a cost object and a cost driver for each activity.
Activity Levels and Cost Drivers Zeller Manufacturing Company produces four lines of highquality lighting fixtures in a single manufacturing plant. Products are built to specific customer specifications. All products are made-to-order. Management of the plant lists the following as the key
activities at the plant:
1. Product design
2. Product testing
3. Developing marketing plan for new products
4. Purchasing, receiving, and inspecting materials for production
5. Manufacturing labor
6. Setups for machine
7. Product inspection, done for each product before packaging for shipment
8. Packaging and shipping
9. Sales calls for new orders from existing customers
10. Processing customer orders
11. Maintenance of plant and equipment
12. Plant security
Required Identify a cost object and a cost driver for each activity.
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