Zeller Manufacturing Company produces four lines of high-quality lighting fixtures in a single manufacturing plant. Products are built to specific customer specifications. All products are made-to-order. Identify a cost object and a cost driver for each activity. Cost object bank includes
customer order
each customer
not allocated
product line,
customer or product line.
Bank for cost driver:
Cannot be traced to product or customer; must be allocating using a reasonable method, for example, the number of units produced.
The number of purchase orders.
Product line
trace directly to the customer
trace to the product line or each customer order requiring design
trace to the product line, or each customer order requiring testing