$10$

Brief Exercise $17\mathrm{.}9($Static$)$ Selecting Activity Bases $($LO$17-6)$

$4$

points

Listed are the eight activity cost pools used by Charvez Corporation. Suggest an appropriate activity base for allocating each of the activity cost pools to products. $($Consider each cost pool independently.$)$

a$.$ Production set$-$up costs

The number of work orders related to each product line

The number of purchase orders related to each product line

The number of set$-$ups required $($or$,$ perhaps, number of production runs$)$

The percent of total square feet in the materials warehouse occupied by each product line $($number of component parts per product line$)$

The square feet of production space occupied by each product line

The number of design or engineering change orders generated

The number of inspections related to each product line $($rate of defects$)$

The total machine hours required to manufacture each product line

b$.$ Heating costs

The number of set$-$ups required $($or$,$ perhaps, number of production runs$)$

The percent of total square feet in the materials warehouse occupied by each product line $($number of component parts per product line$)$

The square feet of production space occupied by each product line

The number of design or engineering change orders generated

The number of purchase orders related to each product line

The number of purchase orders related to each product line

The number of inspections related to each product line $($rate of defects$)$

The total machine hours required to manufacture each product line

The number of work orders related to each product line