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Exercise 6-14 Activity-Based Costing

Exercise 6-14 Activity-Based Costing
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ACCOUNTING

MT425 / MT 425
Managerial Finance and Accounting
Kaplan University (KU Campus)

James Jiambalvo
Managerial Accounting, 4e
Hoboken, NJ: John Wiley & Sons.

Unit 5: Cost Allocation and Business Strategy

Chapter 6 Exercise 6-14 Activity-Based Costing [LO 5] The following are six cost pools established for a company using activity-based costing. The pools are related to the company’s products using cost drivers.
Cost Pools:
1. Inspection of raw materials
2. Production equipment repairs and maintenance
3. Raw materials storage
4. Plant heat, light, water, and power
5. Finished product quality control
6. Production line setups

Required
For each of the preceding cost pools, identify a possible cost driver.

 

FILE: MS WORD

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