Listed below are activities incurred by Rhodes Manufacturing Company. The compan

Question

Listed below are activities incurred by Rhodes Manufacturing Company. The company manufactures a variety of products for sale to large department stores.

Required: Match each activity to its most likely cost-driver. Cost-driver bases may be used more than once.

Activity's

1)product design activity's

2)specialized machinery setups

3)scheduling training and support services for all employees

4)Random inspection of each batch of production

5) high grade plastic used for production runs

6) processing orders and requisitions from customers

7)cost of ordering and manufacturing components used in electronic games manufacture.

Possible Cost driver bases

a) number of orders

b)hours of design time

c)number of units produced

d)number of parts

E) hours of setup time

f) number of setups

G)number of production runs

H) number of employees

Explanation / Answer

1 product design activity's b 2 specialized machinery setups f 3 scheduling training and support services for all employees h 4 Random inspection of each batch of production f 5 high grade plastic used for production runs g 6 processing orders and requisitions from customers a 7 cost of ordering and manufacturing components a

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