Mallory Luongo Inc. manufactures five models of kitchen appliances at its Mesa plant. The company is installing activitybased costing and has identified the following activities performed at its Mesa plant. Having analyzed its Mesa plant 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. (If several answers appear right select the answer that lists all the cost drivers that might be used.)Sorce Instrument Inc. manufactures two products: missile range instruments and space pressure gauges. During April 50 range instruments and 300 pressure gauges were produced and overhead costs of $89 500 were estimated. An analysis of estimated overhead costs reveals the following activities.Skaros Stairs Co. of Moore designs and builds factory-made premium wooden stairs for homes. The manufactured stair components (spindles risers hangers hand rails) permit installation of stairs of varying lengths and widths. All are of white oak wood. Budgeted manufacturing overhead costs for the year 2011 are as follows. Polzin Corporation produces two grades of wine from grapes that it buys from California growers. It produces and sells roughly 3 000 000 liters per year of a low-cost high-volume product called CoolDay. It sells this in 600 000 5-liter jugs. Polzin also produces and sells roughly 300 000 liters per year of a low-volume high-cost product called LiteMist. LiteMist is sold in 1-liter bottles. Based on recent data the CoolDay product has not been as profitable as LiteMist. Management is considering dropping the inexpensive CoolDay line so it can focus more attention on the LiteMist product. The LiteMist product already demands considerably more attention than the CoolDay line.
Mallory Luongo Inc. manufactures five models of kitchen appliances at its Mesa plant. The company is installing
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