Identifying Activity Bases in an Activity-based Cost System

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Problem - Identifying Activity Bases in an Activity-based Cost System

Select Foods Inc. uses activity-based costing to determine product costs. For each activity listed 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

Reference no: EM132690678

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