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ACC- Mill Creek Company, located in Lakeside, Oregon

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Question;Mill Creek Company, located in Lakeside, Oregon, manufactures travel trailers and toy haulers. Mill Creek?s management team has just completed the budget for the upcoming year and has estimated the following costs:Name of Budgeted Cost Budgeted CostPlant insurance $ 86,100Testing raw materials 45,000Manufacturing equipment setup 7,200Quality inspections 57,000Property taxes 23,000Electricity, plant 14,000Electricity, manufacturing equipment 51,250Depreciation, plant 18,800Depreciation, manufacturing equipment 36,700Maintenance worker (manufacturing equipment) 22,500Indirect labor (manufacturing equipment setup) 8,300Design engineering 220,000Required:1. Assign each of the budgeted costs above to one of the following activity cost pools:? Engineering? Equipment setup? Quality control? Factory facilities? Manufacturing equipment2. Compute the total cost of each pool.3. Indicate whether the activities in each pool are unit, batch, product, or facility level.4. Identify the most likely driver for each cost pool from the following list:? Number of inspections/tests? Square feet? Machine hours? Engineering hours? Number of setupsUse the following table to organize your answer. The engineering cost pool is done as an example. Other pools may have more than one cost item included.

 

Paper#43926 | Written in 18-Jul-2015

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