Machine setup, indirect materials		$ 4,000
Inspections		16,000
Tests		4,000
Insurance, factory		110,000
Engineering design		140,000
Depreciation, machinery		520,000
Machine setup, indirect labor		20,000
Property taxes on factory		29,000
Factory heating		19,000
Electricity, plant lighting		21,000
Engineering prototypes		60,000
Depreciation, factory		210,000
Electricity, machinery		36,000
Machine maintenance wages		19,000

Classify the above costs of Santana Corporation into activity cost pools using the following: engineering, machinery, machine setup, quality control, factory costs.

Budgeted Costs		Activity Cost Pool
Machine setup, indirect materials		select an activity cost pool MachineryMaintenanceQuality ControlEngineeringFactory CostsMachine Setup
Inspections		select an activity cost pool Machine SetupMaintenanceQuality ControlMachineryEngineeringFactory Costs
Tests		select an activity cost pool EngineeringFactory CostsMaintenanceMachineryQuality ControlMachine Setup
Insurance, plant		select an activity cost pool Machine SetupQuality ControlMaintenanceMachineryFactory CostsEngineering
Engineering design		select an activity cost pool Quality ControlFactory CostsEngineeringMachineryMachine SetupMaintenance
Depreciation, machinery		select an activity cost pool Quality ControlMaintenanceMachineryMachine SetupFactory CostsEngineering
Machine setup, indirect labor		select an activity cost pool Quality ControlFactory CostsMachineryEngineeringMachine SetupMaintenance
Property taxes		select an activity cost pool MaintenanceEngineeringQuality ControlMachineryMachine SetupFactory Costs
Oil, heating		select an activity cost pool MaintenanceQuality ControlMachine SetupEngineeringMachineryFactory Costs
Electricity, plant lighting		select an activity cost pool Quality ControlFactory CostsEngineeringMachineryMachine SetupMaintenance
Engineering prototypes		select an activity cost pool Factory CostsQuality ControlEngineeringMachineryMachine SetupMaintenance
Depreciation, plant		select an activity cost pool MaintenanceEngineeringQuality ControlMachineryFactory CostsMachine Setup
Electricity, machinery		select an activity cost pool MaintenanceMachineryMachine SetupQuality ControlFactory CostsEngineering
Machine maintenance wages		select an activity cost pool MaintenanceEngineeringQuality ControlFactory CostsMachine SetupMachinery

Identify a cost driver that may be used to assign each cost pool to each line of snowmobiles.

Budgeted Costs		Cost Driver
Machine setup, indirect materials		select a cost driver Machine HoursNumber of EmployeesNumber of Parts or AssembliesNumber of Tests or InspectionsNumber of SetupsEngineering HoursDirect Labor HoursNumber of RequisitionsSquare Feet or Machine HoursNumber of Purchase Orders
Inspections		select a cost driver Number of Tests or InspectionsNumber of Purchase OrdersNumber of RequisitionsNumber of EmployeesEngineering HoursDirect Labor HoursNumber of Parts or AssembliesSquare Feet or Machine HoursMachine HoursNumber of Setups
Tests		select a cost driver Number of SetupsNumber of RequisitionsNumber of Tests or InspectionsNumber of Purchase OrdersEngineering HoursNumber of EmployeesDirect Labor HoursNumber of Parts or AssembliesMachine HoursSquare Feet or Machine Hours
Insurance, plant		select a cost driver Square Feet or Machine HoursEngineering HoursNumber of Parts or AssembliesNumber of SetupsNumber of Purchase OrdersNumber of EmployeesNumber of Tests or InspectionsNumber of RequisitionsDirect Labor Hours
Engineering design		select a cost driver Square Feet or Machine HoursNumber of Tests or InspectionsNumber of SetupsEngineering HoursMachine HoursNumber of EmployeesNumber of Purchase OrdersDirect Labor HoursNumber of Parts or AssembliesNumber of Requisitions
Depreciation, machinery		select a cost driver Number of EmployeesDirect Labor HoursNumber of Tests or InspectionsNumber of Parts or AssembliesNumber of Purchase OrdersNumber of RequisitionsSquare Feet or Machine HoursMachine HoursNumber of SetupsEngineering Hours
Machine setup, indirect labor		select a cost driver Engineering HoursNumber of Purchase OrdersNumber of RequisitionsDirect Labor HoursNumber of Tests or InspectionsNumber of SetupsSquare Feet or Machine HoursNumber of EmployeesMachine HoursNumber of Parts or Assemblies
Property taxes		select a cost driver Direct Labor HoursNumber of EmployeesNumber of Purchase OrdersEngineering HoursNumber of RequisitionsNumber of Parts or AssembliesNumber of Tests or InspectionsSquare Feet or Machine HoursNumber of Setups
Oil, heating		select a cost driver Engineering HoursNumber of Tests or InspectionsNumber of RequisitionsSquare Feet or Machine HoursDirect Labor HoursNumber of EmployeesNumber of Purchase OrdersNumber of Parts or AssembliesNumber of Setups
Electricity, plant lighting		select a cost driver Number of Parts or AssembliesNumber of EmployeesSquare Feet or Machine HoursNumber of Purchase OrdersDirect Labor HoursNumber of Tests or InspectionsNumber of RequisitionsEngineering HoursNumber of Setups
Engineering prototypes		select a cost driver Number of Tests or InspectionsNumber of RequisitionsSquare Feet or Machine HoursNumber of SetupsNumber of EmployeesNumber of Parts or AssembliesEngineering HoursMachine HoursDirect Labor HoursNumber of Purchase Orders
Depreciation, plant		select a cost driver Direct Labor HoursNumber of EmployeesEngineering HoursNumber of RequisitionsNumber of Tests or InspectionsNumber of Parts or AssembliesNumber of Purchase OrdersSquare Feet or Machine HoursNumber of Setups
Electricity, machinery		select a cost driver Direct Labor HoursNumber of RequisitionsMachine HoursNumber of Purchase OrdersSquare Feet or Machine HoursEngineering HoursNumber of EmployeesNumber of Parts or AssembliesNumber of Tests or InspectionsNumber of Setups
Machine maintenance wages		select a cost driver Number of EmployeesNumber of Parts or AssembliesEngineering HoursDirect Labor HoursNumber of RequisitionsNumber of Purchase OrdersNumber of SetupsSquare Feet or Machine HoursNumber of Tests or InspectionsMachine Hours