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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

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
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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