Chapter 26, Problem 26.8EX

Identifying activity bases in an activity-based cost system

Select Foods Inc. uses activity-based costing to determine product costs. For each activity listed in the left column, match an appropriate activity base from the right column. You may use items in the activity-base list more than once or not at all.

Activity	Activity Base
Accounting reports	Engineering change orders
Customer return processing	Kilowatt hours used
Electric power	Number of accounting reports
Human resources	Number of customers
Inventory control	Number of customer orders
Invoice and collecting	Number of customer returns
Machine depreciation	Number of employees
Materials handling	Number of inspections
Order shipping	Number of inventory transactions
Payroll	Number of machine hours
Production control	Number of material moves
Production setup	Number of payroll checks processed
Purchasing	Number of production orders
Quality control	Number of purchase orders
Sales order processing	Number of sales orders
	Number of setups