Question

Mason Company manufactures four products in a single production facility. The company uses activity-based costing. The following activities have been identified through the company's activity analysis: (a) inventory control, (b) machine setups, (c) employee training, (d) quality inspections, (e) materials orderings, (f) drilling operations, and (g) building maintenance.

Answer 1

Answer and Explanation:

The cost driver are as follows;

a. Inventory control - value of material

b. Machine setup - number of setups

c. Employee training - number of employees

d. Quality inspections - number of inspections

e. Material orderings - number of orders

f. Drilling operations - number of machine hours

g. Building maintenance - others

In this way it could be allocated