Name of Budgeted Cost Plant insurance Testing raw materials Manufacturing equipment setup Quality inspections Property taxes Electricity, plant, Electricity, manufacturing equipment Depreciation, plant Depreciation, manufacturing equipment Maintenance worker (manufacturing equipment) Indirect labor (manufacturing equipment setup) Design engineering Engineering hours Number of setups Required: 1. Assign each of the budgeted costs above to one of the following activity pools Engineering Equipment setup Quality control Factory facilities Activity Cost Pool Manufacturing equipment 2. Compute the total cost of each pool 3. Indicate whether the activities in each pool are unit, batch, product, or facility level 4. Identify the most likely driver for each activity pool from the following list Number of inspections or tests Square feet Machine hours Engineering Budgeted Cost $ 86,100 45,000 7,200 57,000 Equipment Setup Equipment Setup Tolal Use the following table to organize your answer. The engineering activity pool is done as an example. Other pools may have more than one cost item included. Quality Control 25,000 14,000 $1,250 18,800 1. Costs included in Pool I Design engineering 16,700 22,500 8,300 220,000 2. Total Cost of Pool 3. Unit, Batch, Product, or Facility $ 220,000 Product $ 0 4. Cost Driver Engineering Hours

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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10
Activity Cost Pool
Engineering
Equipment Setup
Equipment Setup Total
Quality Control
Quality Control Total
Factory Facilities
Fadory Faces Total
Manufactuning Equipment
Manufacturing Equipment Total
1. Costs Included in Pool
Design engineering
2. Total Cost of Pool
$
$
S
220,000 Product
0
3. Unit, Batch, Product, or
Facility
0
4. Cost Driver
Engineering Hours
Transcribed Image Text:10 Activity Cost Pool Engineering Equipment Setup Equipment Setup Total Quality Control Quality Control Total Factory Facilities Fadory Faces Total Manufactuning Equipment Manufacturing Equipment Total 1. Costs Included in Pool Design engineering 2. Total Cost of Pool $ $ S 220,000 Product 0 3. Unit, Batch, Product, or Facility 0 4. Cost Driver Engineering Hours
Name of Budgeted Cost
Plant insurance
Testing raw materials
Manufacturing equipment setup
Quality inspections
Property taxes
Electricity, plant.
Electricity, manufacturing equipment
Depreciation, plant
Depreciation, manufacturing equipment
Maintenance worker (manufacturing equipment)
Indirect labor (manufacturing equipment setup)
Design engineering
Required:
1. Assign each of the budgeted costs above to one of the following activity pools
Engineering
Equipment setup
Quality control
• Factory facilities
Manufacturing equipment
2. Compute the total cost of each pool.
3. Indicate whether the activities in each pool are unit, batch, product, or facility level
4. Identify the most likely driver for each activity pool from the following list
Number of inspections or tests
Square feet
Machine hours
Engineering hours
Number of setups
Use the following table to organize your answer. The engineering activity pool is done as an example. Other pools may have more
than one cost item included.
Activity Cost Pool
Engineering
Budgeted Cost
$ 86,100
45,000
7,200
57,000
23,000
14,000
$1,250
18,800
36,700
22,500
8,300
220,000
Equipment Setup
Equipment Setup Total
Quality Control
Quality Control Total
1. Costs included in Pool)
Design engineering
2. Total Cost of Pool 3. Unit. Batch, Product, or
Facility
220,000 Product
$
S
$
0
0
4. Cost Driver
Engineering Hours
Transcribed Image Text:Name of Budgeted Cost Plant insurance Testing raw materials Manufacturing equipment setup Quality inspections Property taxes Electricity, plant. Electricity, manufacturing equipment Depreciation, plant Depreciation, manufacturing equipment Maintenance worker (manufacturing equipment) Indirect labor (manufacturing equipment setup) Design engineering Required: 1. Assign each of the budgeted costs above to one of the following activity pools Engineering Equipment setup Quality control • Factory facilities Manufacturing equipment 2. Compute the total cost of each pool. 3. Indicate whether the activities in each pool are unit, batch, product, or facility level 4. Identify the most likely driver for each activity pool from the following list Number of inspections or tests Square feet Machine hours Engineering hours Number of setups Use the following table to organize your answer. The engineering activity pool is done as an example. Other pools may have more than one cost item included. Activity Cost Pool Engineering Budgeted Cost $ 86,100 45,000 7,200 57,000 23,000 14,000 $1,250 18,800 36,700 22,500 8,300 220,000 Equipment Setup Equipment Setup Total Quality Control Quality Control Total 1. Costs included in Pool) Design engineering 2. Total Cost of Pool 3. Unit. Batch, Product, or Facility 220,000 Product $ S $ 0 0 4. Cost Driver Engineering Hours
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