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Wilmington Inc

Price: $1.99


Wilmington, Inc. manufactures fi ve models of kitchen appliances at its Mesa plant.
The company is installing activity-based costing and has identifi ed the following activities
performed at its Mesa plant.

1. Designing new models.
2. Purchasing raw materials and parts.
3. Storing and managing inventory.
4. Receiving and inspecting raw materials and parts.
5. Interviewing and hiring new personnel.
6. Machine forming sheet steel into appliance parts.
7. Manually assembling parts into appliances.
8. Training all employees of the company.
9. Insuring all tangible fi xed assets.
10. Supervising production.
11. Maintaining and repairing machinery and equipment.
12. Painting and packaging fi nished appliances.

Having analyzed its Mesa plant operations for purposes of installing activity-based costing,
Wilmington, Inc. identifi ed its activity cost centers. It now needs to identify relevant
activity cost drivers in order to assign overhead costs to its products.

Instructions
Using the activities listed above, identify for each activity one or more cost drivers that
might be used to assign overhead to Wilmington’s fi ve products.

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