Martin's is a store with three departments,Appliances,Tools,and Home Improvements.The company expects to incur the following indirect costs related to its operations:
Store manager's salary
Store supplies
Electric bill
Clerical staff salaries
Payroll taxes
Office supplies
Water bill
Sewer bill
Medical insurance
Vacation pay
Required:
1)Organize the indirect costs into three cost pools: Store Administration,Utilities,and Fringe Benefit Costs,assuming that each department is a cost object
2)Identify an appropriate cost driver for each cost pool.

Question

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The Answer of Martin's is a store with three departments,Appliances,Tools,and Home Improvements.The company expects to incur the following indirect costs related to its operations:
Store manager's salary
Store supplies
Electric bill
Clerical staff salaries
Payroll taxes
Office supplies
Water bill
Sewer bill
Medical insurance
Vacation pay
Required:
1)Organize the indirect costs into three cost pools: Store Administration,Utilities,and Fringe Benefit Costs,assuming that each department is a cost object
2)Identify an appropriate cost driver for each cost pool.

Martin's Is a Store with Three Departments,Appliances,Tools,and Home Improvements