Janitors clean the factory with scrubbing machines and polishing machines.Scrubbing machines scrub the factory floor and polishing machines polish the floor.The cost associated with cleaning the factory is treated as a product cost.What is a good cost driver for the Depreciation Expense associated with the scrubbing and polishing machines?
A) number of janitors operating machines
B) number of labor hours put in by janitors
C) number of kilowatt hours used
D) number of machine hours used

Question

Quizplus · Accepted Answer

The best cost driver for the Depreciation Expense associated with the scrubbing and polishing machines is the number of machine hours used. This is because the depreciation expense of the machines is directly proportional to the number of hours they are used for. Therefore, using the number of machine hours as the cost driver will result in a more accurate allocation of the depreciation expense to the products being produced in the factory.

Janitors Clean the Factory with Scrubbing Machines and Polishing Machines