(WIP) ACC 350 Exam 1 Study Material
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solutions<br />
<strong>ACC</strong> <strong>350</strong><br />
In-Class Problems – Chapter 5<br />
Problem #1 – Identify Activity Level<br />
The company below manufactures trucks and has the following activities:<br />
Activity<br />
Level<br />
1. Work on assembly line Unit Labor hours<br />
Potential Activity Driver<br />
2. Set-up production machinery Batch # of Setups/Setup hours<br />
3. Operate production machines Unit Machine hours<br />
4. Maintenance of production machinery Unit Machine hours<br />
5. Inspect products Batch* # of Inspections/Inspection hours<br />
6. Receive Raw <strong>Material</strong>s Batch # of Receipts<br />
7. Factory heating, lighting & air<br />
conditioning<br />
8. Set up an inventory part number in the<br />
information system.<br />
Facility<br />
Product<br />
Square footage<br />
# of different parts<br />
9. Prepare a production order Batch # of production orders<br />
10. Advertising the product Product # of different products<br />
11. Customer returns Customer # of returns<br />
12. Rent on manufacturing plant Facility Square Footage<br />
13. Move materials Batch # of moves<br />
14. Prepare an engineering change order Product # of different products<br />
15. Provide a “help” line for ten largest<br />
customers.<br />
Customer<br />
# of calls/# of hours on the phone<br />
For each activity, identify the activity level (unit, batch, product, customer or facility) and list a potential<br />
activity driver.<br />
*This (as well as other batch activities) would be a unit-level activity if each unit required inspection.
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