Question: Mill Creek Company located in Lakeside Oregon manufactures travel trailers

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:

1. Assign each of the budgeted costs above to one of the following activity cost pools:
• Engineering
• Equipment setup
• Quality control
• Factory facilities
• Manufacturing equipment
2. 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 setups
Use the following table to organize your answer. The engineering cost pool is done as an example. Other pools may have more than one cost itemincluded.

  • CreatedFebruary 27, 2015
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