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.
E4-14
Venus Creations sells window treatments( shades, blinds, and awnings) to both commercial and residential customers. The following information relates to its budgeted operations for the current year.
The controller, Peggy Kingman, is concerned about the residential product line. She cannot understand why this line is not more profitable given that the installations of window coverings are less complex for residential customers. In addition, the residential client base resides in close proximity to the company office, so travel costs are not as expensive on a per client visit for residential customers. As a result, she has decided to take a closer look at the overhead costs