Concept explainers
Santana Corporation manufactures snowmobiles in its Blue Mountain. Wisconsin, plant. The following costs are budgeted for the first quarters operations.
Machine setup, indirect materials | $ 4,000 |
Inspections | 16,000 |
Tests | 4,000 |
Insurance, plant | 110,000 |
Engineering design | 140,000 |
520,000 | |
Machine setup, indirect labor | 20,000 |
Property taxes | 29,000 |
Oil, heating | 19,000 |
Electricity, plant lighting | 21,000 |
Engineering prototypes | 60,000 |
Depreciation, plant | 210,000 |
Electricity, machinery | 36,000 |
Machine maintenance wages | 19,000 |
Instructions
Classify the above costs of Santana Corporation into activity cost pools using the following: engineering, machinery, machine setup, quality control, factory utilities, maintenance. Next, identify a cost driver that may be used to assign each cost pool to each line of snowmobiles.
Trending nowThis is a popular solution!
Chapter 4 Solutions
Managerial Accounting: Tools for Business Decision Making
Additional Business Textbook Solutions
Horngren's Financial & Managerial Accounting, The Financial Chapters (6th Edition)
Managerial Accounting (5th Edition)
Financial Accounting (12th Edition) (What's New in Accounting)
Horngren's Accounting (11th Edition)
Financial Accounting, Student Value Edition (4th Edition)
Managerial Accounting (4th Edition)
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education