How should the costs be allocated to lighting fixtures

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Reference no: EM132206016

Question: Lavish Lamps produces high-quality lighting fixtures in its manufacturing plant. The fixtures are designed and manufactured according to the customer's specifications and are therefore made-to-order. The plant manager has provided you with the following list of key activities within the plant:

• Product design

• Production scheduling

• Purchasing department

• Receiving department

• Machine set-up

• Quality control

• Plant security

• Customer credit check

• Machine operation

• Maintenance

Required: For each of these activities:

• Identify a cost object and a cost driver.

• How would you recommend recording each of these costs?

• How should these costs be allocated to lighting fixtures?

Reference no: EM132206016

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