Sort costs by how they get a rate
Exercise and reference answers
- Left
- Traced activity
- Items
- Item
- Setups
- Answer
- Traced activity
- Item
- Material moves
- Answer
- Traced activity
- Item
- Inspections
- Answer
- Traced activity
- Item
- Clean-ups
- Answer
- Traced activity
- Item
- Factory insurance
- Answer
- General overhead
- Item
- Maintenance
- Answer
- General overhead
- Item
- Utilities
- Answer
- General overhead
- Item
- Depreciation
- Answer
- General overhead
- Right
- General overhead
- Instructions
- Swipe left for an activity with its own rate, right for general factory overhead.
Explanation
_Source: Jonick, Principles of Managerial Accounting, section 4.4 Activity-Based Costing for a Manufacturing Business_