155) The Marionettes Company is noted for an exceptionally impressive line of Mardi Gras masks. Marionettes has established the following selling and distribution support activity-cost pools and their corresponding activity drivers for the year 2010: Activity Cost Cost Driver Marketing $30 000 $500 000 of sales Customer service 10 000 5000 customer Order execution 5000 100 orders Warehousing 5000 50 product lines Required: a. Determine the activity-cost-driver rate for each of the four selling and distribution activities. b. Under what circumstances is it appropriate to use each of the activity-cost drivers? c. Describe at least one possible negative behavioural consequence for each of the four activity-cost drivers. 156) For each of the following activities identify an appropriate activity-cost driver. a. machine maintenance b. machine setup c. quality control d. material ordering e. production scheduling f. warehouse expense g. engineering design
155) The Marionettes Company is noted for an exceptionally impressive line of Mardi Gras
masks. Marionettes has established the following selling and distribution support
activity-cost pools and their corresponding activity drivers for the year 2010:
Activity Cost Cost Driver
Marketing $30 000 $500 000 of sales
Customer service 10 000 5000 customer
Order execution 5000 100 orders
Warehousing 5000 50 product lines
Required:
a. Determine the activity-cost-driver rate for each of the four selling and distribution
activities.
b. Under what circumstances is it appropriate to use each of the activity-cost drivers?
c. Describe at least one possible negative behavioural consequence for each of the four
activity-cost drivers.
156) For each of the following activities identify an appropriate activity-cost driver.
a. machine maintenance
b. machine setup
c. quality control
d. material ordering
e. production scheduling
f. warehouse expense
g. engineering design
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