Mallory Luongo, Inc, manufactures five models of kitchen appliances at itsMesaplant. The company is installing activity-based costing and has identified the following activities performed at itsMesaplant. Having analyzed itsMesaplant operations for purposes of installing activity-based costing, Mallory Luongo, Inc. identified its activity cost centers. It now needs to identify relevant activity cost drivers in order to assign overhead costs to its products. Using the activities listed below, identify for each activity one or more cost drivers that might be used to assign overhead to Mallory Luongo’s five products.
Instructions
Using the activities listed above, identify for each activity one or more cost drivers that might be used to assign overhead to Mallory Luongo’s five products.