Santana Corporation manufactures snowmobiles in its Blue Mountain, Wisconsin, plant. The...


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
Insurance, plant110,000
Engineering design140,000
Depreciation, machinery520,000
Machine setup, indirect labor20,000
Property taxes29,000
Oil, heating19,000
Electricity, plant lighting21,000
Engineering prototypes60,000
Depreciation, plant210,000
Electricity, machinery36,000
Machine maintenance wages19,000

Classify the above costs of Santana Corporation into activity cost pools using the following: engineering, machinery, machine setup, quality control, factory utilities, maintenance.

Activity Pool Costs:

When a business looks at their cost for a specific term, they like to classify them based on the area they occurred in. Therefore, costs will be broken up into different categories.

Answer and Explanation: 1

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Below is the classification of each of the above provided budgeted costs for the first quarter's operations of Santana Corporation into their...

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Accounting 303: Cost Accounting Formulas
Accounting 303: Cost Accounting Formulas


Chapter 18 / Lesson 14

Accounting 303 covers many aspects of cost accounting, so this is a formula sheet with the information in one place for ratios and calculations. You can print it out and use it on the proctored exam to help calculate accounting information.

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