Nancy Lake owns a small department store in a metropolitan area. For twenty years, the accountant has applied overhead to the various departments-Women's Apparel, Men's Apparel, Cosmetics, Housewares, Shoes, and Electronics-based on the basis of employee hours worked. Nancy Lake's daughter, who is an accounting student at a local university, has suggested her mother should consider using activity-based costing (ABC). In an attempt to implement ABC, Nancy Lake and her daughter have identified the following activities.
Instructions
Determine a cost driver for each of the activities listed below.

Question

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The Answer of Nancy Lake owns a small department store in a metropolitan area. For twenty years, the accountant has applied overhead to the various departments-Women's Apparel, Men's Apparel, Cosmetics, Housewares, Shoes, and Electronics-based on the basis of employee hours worked. Nancy Lake's daughter, who is an accounting student at a local university, has suggested her mother should consider using activity-based costing (ABC). In an attempt to implement ABC, Nancy Lake and her daughter have identified the following activities.
Instructions
Determine a cost driver for each of the activities listed below.

Nancy Lake Owns a Small Department Store in a Metropolitan