Which of the following activity cost pools would most likely be allocated based on the number of production runs?
A)Machinery set-up costs.
B)Raw materials warehousing costs.
C)Factory heating costs.
D)Factory janitorial costs.
E)Indirect labor costs.

Question

Quizplus · Accepted Answer

Machinery set-up costs are typically associated with the process of setting up and preparing a machine for a production run. Therefore, it is more likely that these costs would be allocated based on the number of production runs, as each run would require a new set-up.

Which of the Following Activity Cost Pools Would Most Likely