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