Question: XYZ Corp uses an ABC costing system. It has projected the following indirect costs: (Yearly Budgeted Costs) Building Depreciation $ 200, 000.00 Machine Maintenance $

XYZ Corp uses an ABC costing system. It has projected the following indirect costs:

(Yearly Budgeted Costs)

Building Depreciation $ 200, 000.00

Machine Maintenance $ 95, 000.00

Building Insurance $ 12,000.00

Machine depreciation Cost $ 345,000.00

Machine Electrical Cost $ 130, 000.00

Building Utility Cost $ 48,000.00

Building Janitorial Cost $ 36, 000.00

Total Costs

(Yearly Budgeted Drivers)

Machine Hours $ 500, 000.00

Building Square Footage $ 20, 000.00

Direct Labor Hours $ 350, 000. 00

Units Produced $ 200, 000. 00

The best cost driver to apply the Building Cost Pool would be:

A.Building Square Feet

B.Direct labor Hours

C.Machine Hours

D.Units Produced

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