Santana Corporation manufactures snowmobiles in its Blue Mountain , Wisconsin , plant . The following costs are budgeted for the first quarter ' s operations .
Machine setup , indirect materials 4,000 Inspections 16,000 Tests 4,000 Insurance , plant 110,000 Engineering design 140,000 Depreciation , machinery 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 , and maintenance . Next , identify a cost driver that may be used to assign each cost pool to each line of snowmobiles .