Snow Cat manufactures snowmobiles and uses activity-based costing to allocate overhead cost. To produce snowmobiles, the company uses four activities.

 Snow Cat manufactures snowmobiles and uses activity-based costing to allocate overhead cost. To produce snowmobiles, the company uses four activities. It sets up machines to produce batches of components. Assembly line employees assemble products. Completed snowmobiles are inspected for quality. Maintenance workers clean the factory after production finishes at the end of each day.

1. If $30,000 of Setup is used as an activity cost pool, which of the following would be used as a cost driver?
2. If $200,000 of Assembly is used as an activity cost pool, which of the following would be used as a cost driver?
3. If $40,000 of Inspection is used as an activity cost pool, which of the following would be used as a cost driver?
4. If $10,000 of Maintenance is used as an activity cost pool, which of the following would be used as a cost driver?

 

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