Question

Splash Co. identifies the following activities that pertain to manufacturing overhead for its production of water polo balls, for each activity, identify an appropriate cost driver.
Activity Cost Driver
Materials handling
Machine setups
Factory machine maintenance
Factory supervision
Quality control

Answer 1

Answer and Explanation:

The cost driver refers to the change in the activity units level with respect to the change in activity cost

There are various activities held and according to that the cost driver is also there so that it could be allocated

Just like

Activities                      Cost driver

1) Materials handling - Number of Requisitions

2) Machine setups - Number of Setups

3) Factory machine maintenance - Machine Hours Used

4) Factory supervision - Number of Employees

5) Quality control - Number of Inspections

Material handling should be based on allocating in the number of requisitions

And the same is applied for other activities