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Jessica owns a small department store in a metropolitan area. For twenty years, the accountant...

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Question

Accounting

  1. Jessica owns a small department store in a metropolitan area. For twenty years, the accountant has applied overhead to the various departmentsWomens Apparel, Mens Apparel, Cosmetics, Housewares, Shoes, and Electronicsbased on the basis of employee hours worked. Jessicas daughter, who is an accounting student at a local university, has suggested her mother should consider using activity-based costing (ABC). In an attempt to implement ABC, Jessica and her daughter have identified the following activities. (9 pts)

Instructions

Determine a cost driver for each of the activities listed below.

Cost Pool Cost Driver

a. Placing orders ______________________________

b. Stocking merchandise ______________________________

c. Waiting on customers ______________________________

d. Janitorial and maintenance ______________________________

e. Training employees ______________________________

f. Administrative ______________________________

g. Advertising and Marketing ______________________________

h. Accounting and Legal Services ______________________________

i. Wrapping packages ______________________________

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