Schedule of Activity Costs Quality Control Activities Activity Cost Process audits $1,935 Training of machine operators
Schedule of Activity Costs Quality Control Activities Activity Cost Process audits $1,935 Training of machine operators 732 Processing returned products 1,029 Scrap process (disposal) 581 Rework 1,169 Preventative maintenance 709 Product design 421 Warranty work 702 Finished goods inspection 1,603 From the above schedule of activity costs, determine the prevention costs. Select the correct answer. $5,148 $3,481 $8,881 $5,400 Costello Industries Inc. manufactures only one product. For the year ended December 31, 2014, the contribution margin increased by $16,800 from the planned level of $718,200. The president of Costello Industries Inc. has expressed some concern about such a small increase and has requested a follow-up report. The following data have been gathered from the accounting records for the year ended December 31, 2014: Actual Planned Difference—Increase (Decrease) Sales $1,425,000 $1,402,200 $22,800 Less: Variable cost of goods sold $540,000 $564,300 $-24,300 Variable sell...