Question

(a) and (b). Support your recommend Obj4 EX 4-8 Identifying activity bases in an activity-based cost system Comfort Foods Inc. uses activity-based costing to determine product costs. For each activity li in the left column, match an appropriate activity base from the right column. You may use items the activity-base list more than once or not at all. Activity Base Activity Engineering change orders I Cafeteria Kilowatt hours used 1 Customer return processing Number of customers Electric power Human resources Number of customer orders Inventory control Number of customer returns Invoice and collecting Number of employees 5 Machine depreciation Number of inspections Materials handling Number of inventory transactions Order shipping Number of machine hours Payroll Number of material moves J V . Performance reports Number of payroll checks processed Production control LNumber of performance reports Production setup Number of production orders M Purchasing IS Quality control 1 Number of purchase orders Sales order processing Number of sales orders Number of setups sctions ha

Match the correct activity base

Answer 1

Question ACTIVITY 1 Cafeteria 2 Customer Return Processing 3 Electric Power 4 Human Resource 5 Inventory Control 6 Invoice & Collecting 7 Machine Depreciation 8 Machine Handling 9 Order Shipping 10 Payroll 11 Performance Reports 12 Production Control 13 Production Setups 14 Purchasing 15 Quality Control 16 Sales Order Processing ACTIVITY BASE a Engineering Change Orders b Kilowatt Hours Used c Number of Customers d Number of Customer Orders e Number of Customer Return f Number of Employees g Number of Inspection h Number of Inventory Transactions i Number of Machine Hours j Number of Material Moves k Number of Payroll checks processed Number of Performance Reports m Number of Production Orders n Number of Purchase Orders o Number of Sales Order p Number of Setups Solution ACTIVITY 1 Cafeteria 2 Customer Return Processing 3 Electric Power 4 Human Resource 5 Inventory Control 6 Invoice & Collecting 7 Machine Depreciation 8 Machine Handling 9 Order Shipping 10 Payroll 11 Performance Reports 12 Production Control 13 Production Setups 14 Purchasing 15 Quality Control 16 Sales Order Processing ACTIVITY BASE c Number of Customers e Number of Customer Return b Kilowatt Hours Used fNumber of Employees h Number of Inventory Transactions d Number of Customer Orders i Number of Machine Hours a Engineering Change Orders j Number of Material Moves k Number of Payroll checks processed 1 Number of Performance Reports m Number of Production Orders p Number of Setups n Number of Purchase Orders g Number of Inspection o Number of Sales Order