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 Materials handling Machine setups Factory machine maintenance Quality control supervision
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When it comes to materials handling, a great cost driver is the number of materials moved or the volume of materials processed to help allocate costs accurately. For machine setups, consider using the number of setups required as the cost driver, which reflects the amount of time and resources spent preparing machines for production runs. For factory machine maintenance, the ideal cost driver could be the number of machine hours used; this directly correlates with the wear and tear on the machines. Lastly, for quality control supervision, using the number of inspections or units produced can serve as an effective cost driver, ensuring that quality checks align with production levels.