Question 2 Santana Corporation manufactures snowmobiles in its Blue Mountain, Wi

Question

Question 2 Santana Corporation manufactures snowmobiles in its Blue Mountain, Wisconsin, plant. The following costs are budgeted for the first quarter's operations 1. Machine setup, indirect materials 2. Insurance, plant 3. Engineering design 4. Depreciation, machinery 5. Machine setup, indirect labor 6. Property taxes 7. Oil, heating 8. Electricity, plant lighting 9. Engineering architypes 10. Depreciation, plant 11. Electricity, machinery 12. Machine maintenance wages Classify the above activity cost pool as either Unit-level, batch level, product level or facility

Explanation / Answer

Sr. No. Particularss Remarks 1 Machiene Set-ups, indirect materials Unit Level 2 Insurance , Plant Product Level 3 Engineering , Design Product Level 4 Depreciationnn Machienary Unit Level 5 Machiene Set-ups, indirect Labour Unit Level 6 Property Taxes Product Level 7 Oil, heating Batch Level 8 Electricity , Plant Lighting Product Level 9 Engineering , Architypes Product Level 10 Depreciation plant Product Level 11 Electricity, Machinary Product Level 12 Machienary mainenance wages Product Level

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