Cost driver for processing purchases of materials

OH Cost Pool - Budgeted OH - Budgeted Lvl Cost Driver-OH Cost Driver. Materials Handling - , lbs - Weight of materials. Machine Setup - setups- Number of setups. Machine Repair - - 30, machine hours - Machine Hours. Inspections - - inspections-Number of Inspections. Xie Company identified the following activities, costs, and activity drivers for this year. The company manufactures two types of go- karts: Deluxe and Basic. Activity Handling materials Inspecting product Processing purchase orders Paying suppliers Insuring the factory Designing packaging Expected Costs $, , , , ,  · The place to begin your analysis is in the raw material category as it contains 60% of the cost, the greatest single category. The main cost driver is copper as it comprises the single biggest item of raw mat. Copper and PVC are commodities whose price is established daily on major exchanges around the world.

The list of representative cost drivers in the right column below are randomized with respect to the list of functions in the left column. That is, they do not match. Function Representative Cost Driver 1. Purchasing A. Number of employees 2. Billing B. Number of shipments 3. Shipping C. Number of customers 4. Computer Support D. Number of. Expected Costs: Expected Activity: Handling materials $ , , parts: Inspecting product: , 1, batches: Processing purchase orders: , orders: Paying suppliers: , invoices: Insuring the factory: , 40, square feet: Designing packaging: 85, 2: models. The Work in Process Inventory account of a manufacturing company has a $3, debit balance. The company applies overhead using direct labor cost. The cost sheet of the only job still in process shows direct material cost of $1, and direct labor cost of $ Therefore, the amount of applied overhead is: Multiple Choice: A. $1, B. $2, C. $1,

Manufacturing companies implement cost accounting systems to determine the cost of each of their products. Understanding product costs allows the business to price its products at a level high enough to generate a profit, or analyze cost co. CHICAGO (www.doorway.ru) -- A survey of U.S. home builders shows a growing concern over shortages of several building products, most notably the cement that is used CHICAGO (www.doorway.ru) -- A survey of U.S. home builders shows a growing concern over. Look beyond the sticker price to the hidden costs. E-Mail This Article to a Friend One of the most important factors to consider when making a purchase is the lifetime cost of a product. Most people focus primarily on the purchase price of.