Question

Select Foods Inc. uses activity-based costing to determine product costs. For each acitivty listeed in the left column, match an appropriate activity base from the right column. You may use items in the activity-base list more than once or not at all.

Activity Activity Base
Accounting reports Engineering change orders
Customer return processing Kilowatt hours used
Electric power Number of accounting reports
Human resources Number of customers
Inventory control Number of customer orders
Invoice and collecting Number of customer returns
Machine depreciation Number of employees
Materials handling Number of inspections
Order shipping Number of inventory transactions
Payroll Number of machine hours
Production control Number of material moves
Production setup Number of payroll checks processed
Purchasing Number of production orders
Quality control Number of purchase orders
Sales order processing Number of sales orders
Number of setups

Answer 1

kindly check the explanation section.

Step-by-step explanation:

So, without mincing words, let us dive straight into the solution to the question/problem. So, the question simply require matching Accounting reports that is the activity to the correct activity base for each of the activities provided.

Here is how it looks like;

Activity = Activity Base

[1]. Accounting reports = Number of Accounting reports.

[2]. Customer return processing = Number of customer returns.

[3]. Electric power = Kilowatts Hours used.

[4]. Human resources = number of employees.

[5]. Inventory control = number of inventory transactions.

[6]. Invoice and collecting = number of customers.

[7]. Machine depreciation = number of machine hours.

[8]. Materials handling = number of materials move.

[9]. Order shipping = number of customer orders.

[10]. Payroll = number of payroll checks proposed.

[11]. Production control = number of production orders.

[12]. Production setup = number of setups.

[13]. Purchasing = number of purchase orders.

[14]. Quality control = number of inspections.

[15]. Sales order processing = number of sales orders.