Week Quality Insepctions Cost Units Produced Batches Machine Hours Direct Labor Hours

1 $ 1,626 83,481 57 16,353 10,518

2 $ 2,044 105,939 98 25,598 13,136
3 $ 1,736 138,215 84 25,416 17,125
4 $ 2,401 82,028 123 27,485 10,528
5 $ 2,280 89,964 148 27,776 11,299
6 $ 1,267 130,227 75 19,183 16,180
7 $ 2,391 84,843 166 21,745 10,746
8 $ 2,418 93,504 161 22,909 11,748
9 $ 774 95,214 56 26,631 11,685
10 $ 2,332 117,356 120 21,225 14,621
11 $ 2,572 112,073 131 21,317 13,986
12 $ 1,918 82,702 139 27,087 10,490
13 $ 1,819 148,925 86 26,939 18,323
14 $ 1,326 125,663 58 17,269 15,574
15 $ 1,648 118,270 117 27,161 14,573
16 $ 1,882 115,109 143 18,017 14,447
17 $ 2,129 90,066 112 27,124 11,307
18 $ 1,962 130,190 150 12,683 16,184
19 $ 1,751 131,078 99 17,705 16,107
20 $ 1,061 100,707 64 19,261 12,374
21 $ 762 148,448 54 18,166 18,092
22 $ 2,166 118,074 104 25,257 14,553
23 $ 1,571 138,106 112 19,470 17,068
24 $ 1,691 108,828 107 17,036 13,649
25 $ 2,647 131,576 134 19,045 16,498
26 $ 1,631 123,399 60 20,018 15,375
27 $ 1,215 89,104 61 16,209 11,106
28 $ 1,027 106,660 63 18,393 13,085
29 $ 644 87,025 51 18,437 10,821
30 $ 1,958 133,661 93 10,925 16,552
31 $ 1,554 128,015 120 17,937 15,828
32 $ 1,401 143,200 86 18,559 17,726
33 $ 740 128,785 51 10,099 15,893
34 $ 2,860 142,728 165 20,995 17,733
35 $ 2,224 96,737 132 22,561 12,100
36 $ 1,371 94,023 67 23,730 11,717
37 $ 920 82,081 72 17,493 10,257
38 $ 1,395 149,748 101 16,047 18,412
39 $ 2,474 100,344 169 10,768 12,713
40 $ 2,268 101,425 131 26,647 12,854
41 $ 2,013 89,539 119 14,015 11,135
42 $ 2,356 117,345 156 18,850 14,494
43 $ 2,257 86,370 168 14,751 10,961
44 $ 2,422 98,056 143 19,805 12,276
45 $ 1,932 83,271 109 11,061 10,502
46 $ 2,590 107,880 159 26,449 13,586
47 $ 1,701 114,017 117 16,632 14,023
48 $ 2,040 141,278 122 26,212 17,597
49 $ 1,908 131,427 102 23,126 16,291
50 $ 2,152 87,576 159 11,435 11,155
51 $ 1,705 105,897 72 14,396 13,084
52 $ 1,091 137,863 52 20,149 17,051
53 $ 1,285 105,966 101 27,544 13,152
54 $ 1,749 113,491 68 18,207 14,036
55 $ 1,899 135,404 93 18,511 16,630
56 $ 2,574 118,977 155 13,952 14,758
57 $ 1,460 108,169 67 12,894 13,451
58 $ 1,236 139,303 76 14,862 17,082
59 $ 1,451 141,178 55 14,084 17,372
60 $ 2,052 135,222 108 22,784 16,865
61 $ 1,246 117,651 55 15,647 14,409
62 $ 1,546 90,802 118 11,623 11,485
63 $ 2,338 145,299 156 12,498 18,081
64 $ 1,178 143,988 62 26,536 17,798
65 $ 1,664 139,198 109 25,516 17,157
66 $ 1,042 138,232 66 20,416 17,061
67 $ 1,667 149,345 79 15,158 18,490
68 $ 1,085 97,291 58 15,769 12,127
69 $ 1,690 100,025 116 10,179 12,600
70 $ 2,148 92,106 114 27,464 11,484
71 $ 1,724 144,295 92 23,986 17,806
72 $ 2,002 126,032 116 14,026 15,580
73 $ 2,903 83,548 155 27,859 10,735
74 $ 2,258 95,736 148 26,346 12,087
75 $ 1,496 100,358 72 13,726 12,564
76 $ 1,940 104,231 107 14,854 12,927
77 $ 1,626 80,340 77 18,798 10,234
78 $ 2,129 137,565 110 12,692 16,882
79 $ 1,749 82,523 107 24,803 10,498
80 $ 1,810 97,869 73 23,296 12,276
81 $ 2,003 90,266 110 15,686 11,481
82 $ 2,213 119,616 99 27,074 14,844
83 $ 1,453 115,210 57 13,688 14,113
84 $ 1,311 104,454 102 23,384 13,033
85 $ 1,037 88,748 65 19,517 10,893
86 $ 1,134 139,251 60 12,888 17,237
87 $ 2,371 97,479 124 17,916 12,142
88 $ 2,428 128,002 115 18,031 15,953
89 $ 2,467 111,798 169 22,302 13,962
 90 $ 2,638 106,219 164 21,894 13,343
91 $ 2,400 116,886 125 11,629 14,705
92 $ 2,107 142,368 91 19,878 17,618
93 $ 1,139 112,606 52 10,829 13,777
94 $ 1,306 92,930 96 22,443 11,710
95 $ 2,885 85,927 152 14,086 10,972
96 $ 1,100 128,001 87 21,742 15,807
97 $ 2,131 138,025 148 25,300 16,943
98 $ 1,811 105,397 80 25,729 13,039
99 $ 1,928 88,465 127 22,027 11,082
100 $ 1,276 118,707 67 25,246 14,510
101 $ 1,527 129,211 99 23,519 15,988
102 $ 2,176 144,143 113 20,821 17,874
103 $ 1,564 80,889 118 22,465 10,197
104 $ 2,142 94,066 165 12,640 11,702
Week Quality Insepctions Cost Units Produced
1 $ 1,626 83,481
2 $ 2,044 105,939
Units Prod
3 $ 1,736 138,215
4 $ 2,401 82,028 160,000
5 $ 2,280 89,964 140,000
6 $ 1,267 130,227 120,000
7 $ 2,391 84,843 100,000
8 $ 2,418 93,504 80,000
9 $ 774 95,214 60,000
10 $ 2,332 117,356 40,000
11 $ 2,572 112,073 20,000
12 $ 1,918 82,702 -
13 $ 1,819 148,925 $500 $1,000 $1,500 $2
14 $ 1,326 125,663
15 $ 1,648 118,270
16 $ 1,882 115,109
17 $ 2,129 90,066
18 $ 1,962 130,190
19 $ 1,751 131,078
20 $ 1,061 100,707
21 $ 762 148,448
22 $ 2,166 118,074
23 $ 1,571 138,106
24 $ 1,691 108,828
25 $ 2,647 131,576
26 $ 1,631 123,399
27 $ 1,215 89,104
28 $ 1,027 106,660
29 $ 644 87,025
30 $ 1,958 133,661
31 $ 1,554 128,015
32 $ 1,401 143,200
33 $ 740 128,785
34 $ 2,860 142,728
35 $ 2,224 96,737
36 $ 1,371 94,023
37 $ 920 82,081
38 $ 1,395 149,748
39 $ 2,474 100,344
40 $ 2,268 101,425
41 $ 2,013 89,539
42 $ 2,356 117,345
43 $ 2,257 86,370
44 $ 2,422 98,056
45 $ 1,932 83,271
46 $ 2,590 107,880
47 $ 1,701 114,017
48 $ 2,040 141,278
49 $ 1,908 131,427
50 $ 2,152 87,576
51 $ 1,705 105,897
52 $ 1,091 137,863
53 $ 1,285 105,966
54 $ 1,749 113,491
55 $ 1,899 135,404
56 $ 2,574 118,977
57 $ 1,460 108,169
58 $ 1,236 139,303
59 $ 1,451 141,178
60 $ 2,052 135,222
61 $ 1,246 117,651
62 $ 1,546 90,802
63 $ 2,338 145,299
64 $ 1,178 143,988
65 $ 1,664 139,198
66 $ 1,042 138,232
67 $ 1,667 149,345
68 $ 1,085 97,291
69 $ 1,690 100,025
70 $ 2,148 92,106
71 $ 1,724 144,295
72 $ 2,002 126,032
73 $ 2,903 83,548
74 $ 2,258 95,736
75 $ 1,496 100,358
76 $ 1,940 104,231
77 $ 1,626 80,340
78 $ 2,129 137,565
79 $ 1,749 82,523
80 $ 1,810 97,869
81 $ 2,003 90,266
82 $ 2,213 119,616
83 $ 1,453 115,210
84 $ 1,311 104,454
85 $ 1,037 88,748
86 $ 1,134 139,251
87 $ 2,371 97,479
88 $ 2,428 128,002
89 $ 2,467 111,798
 90 $ 2,638 106,219
91 $ 2,400 116,886
92 $ 2,107 142,368
93 $ 1,139 112,606
94 $ 1,306 92,930
95 $ 2,885 85,927
96 $ 1,100 128,001
97 $ 2,131 138,025
98 $ 1,811 105,397
99 $ 1,928 88,465
100 $ 1,276 118,707
101 $ 1,527 129,211
102 $ 2,176 144,143
103 $ 1,564 80,889
104 $ 2,142 94,066
 Units Produced

$1,000 $1,500 $2,000 $2,500 $3,000 $3,500

Week Quality Insepctions Cost Batches
1 $ 1,626 57
2 $ 2,044 98
3 $ 1,736 84 Batches
4 $ 2,401 123
180
5 $ 2,280 148
160
6 $ 1,267 75
7 $ 2,391 166 140

8 $ 2,418 161 120

9 $ 774 56 100
10 $ 2,332 120 80
11 $ 2,572 131
60
12 $ 1,918 139
40
13 $ 1,819 86
14 $ 1,326 58 20
15 $ 1,648 117 0
$500 $1,000 $1,500 $2,000 $2,500
16 $ 1,882 143
17 $ 2,129 112
18 $ 1,962 150
19 $ 1,751 99
20 $ 1,061 64
21 $ 762 54
22 $ 2,166 104
23 $ 1,571 112
24 $ 1,691 107
25 $ 2,647 134
26 $ 1,631 60
27 $ 1,215 61
28 $ 1,027 63
29 $ 644 51
30 $ 1,958 93
31 $ 1,554 120
32 $ 1,401 86
33 $ 740 51
34 $ 2,860 165
35 $ 2,224 132
36 $ 1,371 67
37 $ 920 72
38 $ 1,395 101
39 $ 2,474 169
40 $ 2,268 131
41 $ 2,013 119
42 $ 2,356 156
43 $ 2,257 168
44 $ 2,422 143
45 $ 1,932 109
46 $ 2,590 159
47 $ 1,701 117
48 $ 2,040 122
49 $ 1,908 102
50 $ 2,152 159
51 $ 1,705 72
52 $ 1,091 52
53 $ 1,285 101
54 $ 1,749 68
55 $ 1,899 93
56 $ 2,574 155
57 $ 1,460 67
58 $ 1,236 76
59 $ 1,451 55
60 $ 2,052 108
61 $ 1,246 55
62 $ 1,546 118
63 $ 2,338 156
64 $ 1,178 62
65 $ 1,664 109
66 $ 1,042 66
67 $ 1,667 79
68 $ 1,085 58
69 $ 1,690 116
70 $ 2,148 114
71 $ 1,724 92
72 $ 2,002 116
73 $ 2,903 155
74 $ 2,258 148
75 $ 1,496 72
76 $ 1,940 107
77 $ 1,626 77
78 $ 2,129 110
79 $ 1,749 107
80 $ 1,810 73
81 $ 2,003 110
82 $ 2,213 99
83 $ 1,453 57
84 $ 1,311 102
85 $ 1,037 65
86 $ 1,134 60
87 $ 2,371 124
88 $ 2,428 115
89 $ 2,467 169
 90 $ 2,638 164
91 $ 2,400 125
92 $ 2,107 91
93 $ 1,139 52
94 $ 1,306 96
95 $ 2,885 152
96 $ 1,100 87
97 $ 2,131 148
98 $ 1,811 80
99 $ 1,928 127
100 $ 1,276 67
101 $ 1,527 99
102 $ 2,176 113
103 $ 1,564 118
104 $ 2,142 165
 Batches

1,500 $2,000 $2,500 $3,000 $3,500

Week Quality Insepctions Cost Machine Hours
1 $ 1,626 16,353
2 $ 2,044 25,598
3 $ 1,736 25,416
4 $ 2,401 27,485 Machine Hou
5 $ 2,280 27,776 30,000
6 $ 1,267 19,183
7 $ 2,391 21,745 25,000
8 $ 2,418 22,909
9 $ 774 26,631 20,000

10 $ 2,332 21,225
15,000
11 $ 2,572 21,317
12 $ 1,918 27,087 10,000
13 $ 1,819 26,939
14 $ 1,326 17,269 5,000
15 $ 1,648 27,161
16 $ 1,882 18,017 -
$500 $1,000 $1,500 $2,000
17 $ 2,129 27,124
18 $ 1,962 12,683
19 $ 1,751 17,705
20 $ 1,061 19,261
21 $ 762 18,166
22 $ 2,166 25,257
23 $ 1,571 19,470
24 $ 1,691 17,036
25 $ 2,647 19,045
26 $ 1,631 20,018
27 $ 1,215 16,209
28 $ 1,027 18,393
29 $ 644 18,437
30 $ 1,958 10,925
31 $ 1,554 17,937
32 $ 1,401 18,559
33 $ 740 10,099
34 $ 2,860 20,995
35 $ 2,224 22,561
36 $ 1,371 23,730
37 $ 920 17,493
38 $ 1,395 16,047
39 $ 2,474 10,768
40 $ 2,268 26,647
41 $ 2,013 14,015
42 $ 2,356 18,850
43 $ 2,257 14,751
44 $ 2,422 19,805
45 $ 1,932 11,061
46 $ 2,590 26,449
47 $ 1,701 16,632
48 $ 2,040 26,212
49 $ 1,908 23,126
50 $ 2,152 11,435
51 $ 1,705 14,396
52 $ 1,091 20,149
53 $ 1,285 27,544
54 $ 1,749 18,207
55 $ 1,899 18,511
56 $ 2,574 13,952
57 $ 1,460 12,894
58 $ 1,236 14,862
59 $ 1,451 14,084
60 $ 2,052 22,784
61 $ 1,246 15,647
62 $ 1,546 11,623
63 $ 2,338 12,498
64 $ 1,178 26,536
65 $ 1,664 25,516
66 $ 1,042 20,416
67 $ 1,667 15,158
68 $ 1,085 15,769
69 $ 1,690 10,179
70 $ 2,148 27,464
71 $ 1,724 23,986
72 $ 2,002 14,026
73 $ 2,903 27,859
74 $ 2,258 26,346
75 $ 1,496 13,726
76 $ 1,940 14,854
77 $ 1,626 18,798
78 $ 2,129 12,692
79 $ 1,749 24,803
80 $ 1,810 23,296
81 $ 2,003 15,686
82 $ 2,213 27,074
83 $ 1,453 13,688
84 $ 1,311 23,384
85 $ 1,037 19,517
86 $ 1,134 12,888
87 $ 2,371 17,916
88 $ 2,428 18,031
89 $ 2,467 22,302
 90 $ 2,638 21,894
91 $ 2,400 11,629
92 $ 2,107 19,878
93 $ 1,139 10,829
94 $ 1,306 22,443
95 $ 2,885 14,086
96 $ 1,100 21,742
97 $ 2,131 25,300
98 $ 1,811 25,729
99 $ 1,928 22,027
100 $ 1,276 25,246
101 $ 1,527 23,519
102 $ 2,176 20,821
103 $ 1,564 22,465
104 $ 2,142 12,640
 Machine Hours

1,000 $1,500 $2,000 $2,500 $3,000 $3,500

Week Quality Insepctions Cost Direct Labor Hours
1 $ 1,626 10,518
2 $ 2,044 13,136 Direct La
3 $ 1,736 17,125 20,000
4 $ 2,401 10,528 18,000
5 $ 2,280 11,299 16,000
6 $ 1,267 16,180 14,000
7 $ 2,391 10,746
12,000
8 $ 2,418 11,748
10,000
9 $ 774 11,685
8,000
10 $ 2,332 14,621
6,000
11 $ 2,572 13,986
4,000
12 $ 1,918 10,490
2,000
13 $ 1,819 18,323
14 $ 1,326 15,574 -
$500 $1,000 $1,500 $
15 $ 1,648 14,573
16 $ 1,882 14,447
17 $ 2,129 11,307
18 $ 1,962 16,184
19 $ 1,751 16,107
20 $ 1,061 12,374
21 $ 762 18,092
22 $ 2,166 14,553
23 $ 1,571 17,068
24 $ 1,691 13,649
25 $ 2,647 16,498
26 $ 1,631 15,375
27 $ 1,215 11,106
28 $ 1,027 13,085
29 $ 644 10,821
30 $ 1,958 16,552
31 $ 1,554 15,828
32 $ 1,401 17,726
33 $ 740 15,893
34 $ 2,860 17,733
35 $ 2,224 12,100
36 $ 1,371 11,717
37 $ 920 10,257
38 $ 1,395 18,412
39 $ 2,474 12,713
40 $ 2,268 12,854
41 $ 2,013 11,135
42 $ 2,356 14,494
43 $ 2,257 10,961
44 $ 2,422 12,276
45 $ 1,932 10,502
46 $ 2,590 13,586
47 $ 1,701 14,023
48 $ 2,040 17,597
49 $ 1,908 16,291
50 $ 2,152 11,155
51 $ 1,705 13,084
52 $ 1,091 17,051
53 $ 1,285 13,152
54 $ 1,749 14,036
55 $ 1,899 16,630
56 $ 2,574 14,758
57 $ 1,460 13,451
58 $ 1,236 17,082
59 $ 1,451 17,372
60 $ 2,052 16,865
61 $ 1,246 14,409
62 $ 1,546 11,485
63 $ 2,338 18,081
64 $ 1,178 17,798
65 $ 1,664 17,157
66 $ 1,042 17,061
67 $ 1,667 18,490
68 $ 1,085 12,127
69 $ 1,690 12,600
70 $ 2,148 11,484
71 $ 1,724 17,806
72 $ 2,002 15,580
73 $ 2,903 10,735
74 $ 2,258 12,087
75 $ 1,496 12,564
76 $ 1,940 12,927
77 $ 1,626 10,234
78 $ 2,129 16,882
79 $ 1,749 10,498
80 $ 1,810 12,276
81 $ 2,003 11,481
82 $ 2,213 14,844
83 $ 1,453 14,113
84 $ 1,311 13,033
85 $ 1,037 10,893
86 $ 1,134 17,237
87 $ 2,371 12,142
88 $ 2,428 15,953
89 $ 2,467 13,962
 90 $ 2,638 13,343
91 $ 2,400 14,705
92 $ 2,107 17,618
93 $ 1,139 13,777
94 $ 1,306 11,710
95 $ 2,885 10,972
96 $ 1,100 15,807
97 $ 2,131 16,943
98 $ 1,811 13,039
99 $ 1,928 11,082
100 $ 1,276 14,510
101 $ 1,527 15,988
102 $ 2,176 17,874
103 $ 1,564 10,197
104 $ 2,142 11,702
 Direct Labor Hours

1,000 $1,500 $2,000 $2,500 $3,000 $3,500

Question: What do you notice about the appropriateness of each as the selected driver for assigning inspections co
products under the new activity-based costing

Based on the scatterplot generated to show the relationship between the Quality Inspection Cost and the four selec
drivers, it can be inferred that the no. of batches is the most appropriate driver as it shows positive correlation with
Quality Inspection Cost. The other cost drivers showed no clear relationship, and therefore are not appropriate basi
predict the Quality Inspection Cost
r assigning inspections costs to

on Cost and the four selected

s positive correlation with the
e are not appropriate basis to
Week Quality Insepctions Cost Units Produced Batches Machine Hours
1 $ 1,626 83,481 57 16,353
2 $ 2,044 105,939 98 25,598
3 $ 1,736 138,215 84 25,416
4 $ 2,401 82,028 123 27,485
5 $ 2,280 89,964 148 27,776
6 $ 1,267 130,227 75 19,183
7 $ 2,391 84,843 166 21,745
8 $ 2,418 93,504 161 22,909
9 $ 774 95,214 56 26,631
10 $ 2,332 117,356 120 21,225
11 $ 2,572 112,073 131 21,317
12 $ 1,918 82,702 139 27,087
13 $ 1,819 148,925 86 26,939
14 $ 1,326 125,663 58 17,269
15 $ 1,648 118,270 117 27,161
16 $ 1,882 115,109 143 18,017
17 $ 2,129 90,066 112 27,124
18 $ 1,962 130,190 150 12,683
19 $ 1,751 131,078 99 17,705
20 $ 1,061 100,707 64 19,261
21 $ 762 148,448 54 18,166
22 $ 2,166 118,074 104 25,257
23 $ 1,571 138,106 112 19,470
24 $ 1,691 108,828 107 17,036
25 $ 2,647 131,576 134 19,045
26 $ 1,631 123,399 60 20,018
27 $ 1,215 89,104 61 16,209
28 $ 1,027 106,660 63 18,393
29 $ 644 87,025 51 18,437
30 $ 1,958 133,661 93 10,925
31 $ 1,554 128,015 120 17,937
32 $ 1,401 143,200 86 18,559
33 $ 740 128,785 51 10,099
34 $ 2,860 142,728 165 20,995
35 $ 2,224 96,737 132 22,561
36 $ 1,371 94,023 67 23,730
37 $ 920 82,081 72 17,493
38 $ 1,395 149,748 101 16,047
39 $ 2,474 100,344 169 10,768
40 $ 2,268 101,425 131 26,647
41 $ 2,013 89,539 119 14,015
42 $ 2,356 117,345 156 18,850
43 $ 2,257 86,370 168 14,751
44 $ 2,422 98,056 143 19,805
45 $ 1,932 83,271 109 11,061
46 $ 2,590 107,880 159 26,449
47 $ 1,701 114,017 117 16,632
48 $ 2,040 141,278 122 26,212
49 $ 1,908 131,427 102 23,126
50 $ 2,152 87,576 159 11,435
51 $ 1,705 105,897 72 14,396
52 $ 1,091 137,863 52 20,149
53 $ 1,285 105,966 101 27,544
54 $ 1,749 113,491 68 18,207
55 $ 1,899 135,404 93 18,511
56 $ 2,574 118,977 155 13,952
57 $ 1,460 108,169 67 12,894
58 $ 1,236 139,303 76 14,862
59 $ 1,451 141,178 55 14,084
60 $ 2,052 135,222 108 22,784
61 $ 1,246 117,651 55 15,647
62 $ 1,546 90,802 118 11,623
63 $ 2,338 145,299 156 12,498
64 $ 1,178 143,988 62 26,536
65 $ 1,664 139,198 109 25,516
66 $ 1,042 138,232 66 20,416
67 $ 1,667 149,345 79 15,158
68 $ 1,085 97,291 58 15,769
69 $ 1,690 100,025 116 10,179
70 $ 2,148 92,106 114 27,464
71 $ 1,724 144,295 92 23,986
72 $ 2,002 126,032 116 14,026
73 $ 2,903 83,548 155 27,859
74 $ 2,258 95,736 148 26,346
75 $ 1,496 100,358 72 13,726
76 $ 1,940 104,231 107 14,854
77 $ 1,626 80,340 77 18,798
78 $ 2,129 137,565 110 12,692
79 $ 1,749 82,523 107 24,803
80 $ 1,810 97,869 73 23,296
81 $ 2,003 90,266 110 15,686
82 $ 2,213 119,616 99 27,074
83 $ 1,453 115,210 57 13,688
84 $ 1,311 104,454 102 23,384
85 $ 1,037 88,748 65 19,517
86 $ 1,134 139,251 60 12,888
87 $ 2,371 97,479 124 17,916
88 $ 2,428 128,002 115 18,031
89 $ 2,467 111,798 169 22,302
 90 $ 2,638 106,219 164 21,894
91 $ 2,400 116,886 125 11,629
92 $ 2,107 142,368 91 19,878
93 $ 1,139 112,606 52 10,829
94 $ 1,306 92,930 96 22,443
95 $ 2,885 85,927 152 14,086
96 $ 1,100 128,001 87 21,742
97 $ 2,131 138,025 148 25,300
98 $ 1,811 105,397 80 25,729
99 $ 1,928 88,465 127 22,027
100 $ 1,276 118,707 67 25,246
101 $ 1,527 129,211 99 23,519
102 $ 2,176 144,143 113 20,821
103 $ 1,564 80,889 118 22,465
104 $ 2,142 94,066 165 12,640
Direct Labor Hours
10,518 COST DRIVER
13,136 1. Quality Inspection Cost and Units Produced
17,125 2. Quality Inspection Cost and No. of Batches
10,528 3. Quality Inspection Cost annd No. of Mhours
11,299 4. Quality Inspection Cost and DL Hours
16,180
10,746
11,748
11,685
14,621
13,986
10,490
18,323
15,574
14,573
14,447
11,307
16,184
16,107
12,374
18,092
14,553
17,068
13,649
16,498
15,375
11,106
13,085
10,821
16,552
15,828
17,726
15,893
17,733
12,100
11,717
10,257
18,412
12,713
12,854
11,135
14,494
10,961
12,276
10,502
13,586
14,023
17,597
16,291
11,155
13,084
17,051
13,152
14,036
16,630
14,758
13,451
17,082
17,372
16,865
14,409
11,485
18,081
17,798
17,157
17,061
18,490
12,127
12,600
11,484
17,806
15,580
10,735
12,087
12,564
12,927
10,234
16,882
10,498
12,276
11,481
14,844
14,113
13,033
10,893
17,237
12,142
15,953
13,962
13,343
14,705
17,618
13,777
11,710
10,972
15,807
16,943
13,039
11,082
14,510
15,988
17,874
10,197
11,702
CORRELATION
-0.1218663047
0.83678273
0.1336982019
-0.0963223562
Week Quality Insepctions Cost Units Produced Batches Machine Hours
1 $ 1,626 83,481 57 16,353
2 $ 2,044 105,939 98 25,598
3 $ 1,736 138,215 84 25,416
4 $ 2,401 82,028 123 27,485
5 $ 2,280 89,964 148 27,776
6 $ 1,267 130,227 75 19,183
7 $ 2,391 84,843 166 21,745
8 $ 2,418 93,504 161 22,909
9 $ 774 95,214 56 26,631
10 $ 2,332 117,356 120 21,225
11 $ 2,572 112,073 131 21,317
12 $ 1,918 82,702 139 27,087
13 $ 1,819 148,925 86 26,939
14 $ 1,326 125,663 58 17,269
15 $ 1,648 118,270 117 27,161
16 $ 1,882 115,109 143 18,017
17 $ 2,129 90,066 112 27,124
18 $ 1,962 130,190 150 12,683
19 $ 1,751 131,078 99 17,705
20 $ 1,061 100,707 64 19,261
21 $ 762 148,448 54 18,166
22 $ 2,166 118,074 104 25,257
23 $ 1,571 138,106 112 19,470
24 $ 1,691 108,828 107 17,036
25 $ 2,647 131,576 134 19,045
26 $ 1,631 123,399 60 20,018
27 $ 1,215 89,104 61 16,209
28 $ 1,027 106,660 63 18,393
29 $ 644 87,025 51 18,437
30 $ 1,958 133,661 93 10,925
31 $ 1,554 128,015 120 17,937
32 $ 1,401 143,200 86 18,559
33 $ 740 128,785 51 10,099
34 $ 2,860 142,728 165 20,995
35 $ 2,224 96,737 132 22,561
36 $ 1,371 94,023 67 23,730
37 $ 920 82,081 72 17,493
38 $ 1,395 149,748 101 16,047
39 $ 2,474 100,344 169 10,768
40 $ 2,268 101,425 131 26,647
41 $ 2,013 89,539 119 14,015
42 $ 2,356 117,345 156 18,850
43 $ 2,257 86,370 168 14,751
44 $ 2,422 98,056 143 19,805
45 $ 1,932 83,271 109 11,061
46 $ 2,590 107,880 159 26,449
47 $ 1,701 114,017 117 16,632
48 $ 2,040 141,278 122 26,212
49 $ 1,908 131,427 102 23,126
50 $ 2,152 87,576 159 11,435
51 $ 1,705 105,897 72 14,396
52 $ 1,091 137,863 52 20,149
53 $ 1,285 105,966 101 27,544
54 $ 1,749 113,491 68 18,207
55 $ 1,899 135,404 93 18,511
56 $ 2,574 118,977 155 13,952
57 $ 1,460 108,169 67 12,894
58 $ 1,236 139,303 76 14,862
59 $ 1,451 141,178 55 14,084
60 $ 2,052 135,222 108 22,784
61 $ 1,246 117,651 55 15,647
62 $ 1,546 90,802 118 11,623
63 $ 2,338 145,299 156 12,498
64 $ 1,178 143,988 62 26,536
65 $ 1,664 139,198 109 25,516
66 $ 1,042 138,232 66 20,416
67 $ 1,667 149,345 79 15,158
68 $ 1,085 97,291 58 15,769
69 $ 1,690 100,025 116 10,179
70 $ 2,148 92,106 114 27,464
71 $ 1,724 144,295 92 23,986
72 $ 2,002 126,032 116 14,026
73 $ 2,903 83,548 155 27,859
74 $ 2,258 95,736 148 26,346
75 $ 1,496 100,358 72 13,726
76 $ 1,940 104,231 107 14,854
77 $ 1,626 80,340 77 18,798
78 $ 2,129 137,565 110 12,692
79 $ 1,749 82,523 107 24,803
80 $ 1,810 97,869 73 23,296
81 $ 2,003 90,266 110 15,686
82 $ 2,213 119,616 99 27,074
83 $ 1,453 115,210 57 13,688
84 $ 1,311 104,454 102 23,384
85 $ 1,037 88,748 65 19,517
86 $ 1,134 139,251 60 12,888
87 $ 2,371 97,479 124 17,916
88 $ 2,428 128,002 115 18,031
89 $ 2,467 111,798 169 22,302
 90 $ 2,638 106,219 164 21,894
91 $ 2,400 116,886 125 11,629
92 $ 2,107 142,368 91 19,878
93 $ 1,139 112,606 52 10,829
94 $ 1,306 92,930 96 22,443
95 $ 2,885 85,927 152 14,086
96 $ 1,100 128,001 87 21,742
97 $ 2,131 138,025 148 25,300
98 $ 1,811 105,397 80 25,729
99 $ 1,928 88,465 127 22,027
100 $ 1,276 118,707 67 25,246
101 $ 1,527 129,211 99 23,519
102 $ 2,176 144,143 113 20,821
103 $ 1,564 80,889 118 22,465
104 $ 2,142 94,066 165 12,640
Direct Labor Hours
10,518 COST DRIVER
13,136 1. Quality Inspection Cost and Units Produced
17,125 2. Quality Inspection Cost and No. of Batches
10,528 3. Quality Inspection Cost annd No. of Mhours
11,299 4. Quality Inspection Cost and DL Hours
16,180
10,746
11,748
11,685
14,621
13,986
10,490
18,323
15,574
14,573
14,447
11,307
16,184
16,107
12,374
18,092
14,553
17,068
13,649
16,498
15,375
11,106
13,085
10,821
16,552
15,828
17,726
15,893
17,733
12,100
11,717
10,257
18,412
12,713
12,854
11,135
14,494
10,961
12,276
10,502
13,586
14,023
17,597
16,291
11,155
13,084
17,051
13,152
14,036
16,630
14,758
13,451
17,082
17,372
16,865
14,409
11,485
18,081
17,798
17,157
17,061
18,490
12,127
12,600
11,484
17,806
15,580
10,735
12,087
12,564
12,927
10,234
16,882
10,498
12,276
11,481
14,844
14,113
13,033
10,893
17,237
12,142
15,953
13,962
13,343
14,705
17,618
13,777
11,710
10,972
15,807
16,943
13,039
11,082
14,510
15,988
17,874
10,197
11,702
RSQ
0.0148513962
0.7002053372
0.0178752092
0.0092779963
Based on your analysis, which activity driver do you recommend? Why?

Based on the results of the scatterplot, the CORREL Formula and RSQ Formula, the best activ
driver that is to be recommended is the No. of Batches. The scatterplot between the Quality
Inspection Cost and the No. of Batches showed a diagonal line, in contrast with the results of
other three cost drivers where no pattern of a line can be inferred. In addition, the result of t
CORREL Formula supported that the no. of batches showed the strongest correlation- one th
being so close to +1 correlation. Further, the RSQ Formula which shows how much x (no.of b
influences y (quality inspection cost) reveals that the no. of batches yieled the highest amoun
the highest influence among the other 3 activity cost drivers.
 Q Formula, the best activity
plot between the Quality
ontrast with the results of the
In addition, the result of the
ongest correlation- one that is
ows how much x (no.of batches)
yieled the highest amount, or
Week Quality Insepctions Cost Batches
29 $ 644 51 The activity cost rate for quality inspection co
33 $ 740 51
21 $ 762 52 Total Y's 187,517
9 $ 774 52 Total X's 10,896
37 $ 920 54
28 $ 1,027 55 Activity Cost Rate= Total Y's/ Total X's
85 $ 1,037 55 Activity Cost Rate= 17.20971
66 $ 1,042 56
20 $ 1,061 57
68 $ 1,085 57
52 $ 1,091 58
96 $ 1,100 58
86 $ 1,134 60
93 $ 1,139 60
64 $ 1,178 61
27 $ 1,215 62
58 $ 1,236 63
61 $ 1,246 64
6 $ 1,267 65
100 $ 1,276 66
53 $ 1,285 67
94 $ 1,306 67
84 $ 1,311 67
14 $ 1,326 68
36 $ 1,371 72
38 $ 1,395 72
32 $ 1,401 72
59 $ 1,451 73
83 $ 1,453 75
57 $ 1,460 76
75 $ 1,496 77
101 $ 1,527 79
62 $ 1,546 80
31 $ 1,554 84
103 $ 1,564 86
23 $ 1,571 86
1 $ 1,626 87
77 $ 1,626 91
26 $ 1,631 92
15 $ 1,648 93
65 $ 1,664 93
67 $ 1,667 96
69 $ 1,690 98
24 $ 1,691 99
47 $ 1,701 99
51 $ 1,705 99
71 $ 1,724 101
 3 $ 1,736 101
54 $ 1,749 102
79 $ 1,749 102
19 $ 1,751 104
80 $ 1,810 107
98 $ 1,811 107
13 $ 1,819 107
16 $ 1,882 108
55 $ 1,899 109
49 $ 1,908 109
12 $ 1,918 110
99 $ 1,928 110
45 $ 1,932 112
76 $ 1,940 112
30 $ 1,958 113
18 $ 1,962 114
72 $ 2,002 115
81 $ 2,003 116
41 $ 2,013 116
48 $ 2,040 117
2 $ 2,044 117
60 $ 2,052 118
92 $ 2,107 118
17 $ 2,129 119
78 $ 2,129 120
97 $ 2,131 120
104 $ 2,142 122
70 $ 2,148 123
50 $ 2,152 124
22 $ 2,166 125
102 $ 2,176 127
82 $ 2,213 131
35 $ 2,224 131
43 $ 2,257 132
74 $ 2,258 134
40 $ 2,268 139
5 $ 2,280 143
10 $ 2,332 143
63 $ 2,338 148
42 $ 2,356 148
87 $ 2,371 148
7 $ 2,391 150
91 $ 2,400 152
4 $ 2,401 155
8 $ 2,418 155
44 $ 2,422 156
88 $ 2,428 156
89 $ 2,467 159
39 $ 2,474 159
11 $ 2,572 161
56 $ 2,574 164
46 $ 2,590 165
90 $ 2,638 165
25 $ 2,647 166
34 $ 2,860 168
95 $ 2,885 169
73 $ 2,903 169

$ 187,517 10,896
or quality inspection cost may be computed as follows:

al Y's/ Total X's

Week Quality Insepctions Cost Batches
1 $ 1,626 57 Using the high-low method, the activity cost rate fo
2 $ 2,044 98
3 $ 1,736 84
4 $ 2,401 123
5 $ 2,280 148
6 $ 1,267 75
7 $ 2,391 166
8 $ 2,418 161
9 $ 774 56
10 $ 2,332 120
11 $ 2,572 131
12 $ 1,918 139
13 $ 1,819 86
14 $ 1,326 58
15 $ 1,648 117
16 $ 1,882 143
17 $ 2,129 112
18 $ 1,962 150
19 $ 1,751 99
20 $ 1,061 64
21 $ 762 54
22 $ 2,166 104
23 $ 1,571 112
24 $ 1,691 107
25 $ 2,647 134
26 $ 1,631 60
27 $ 1,215 61
28 $ 1,027 63
29 $ 644 51
30 $ 1,958 93
31 $ 1,554 120
32 $ 1,401 86
33 $ 740 51
34 $ 2,860 165
35 $ 2,224 132
36 $ 1,371 67
37 $ 920 72
38 $ 1,395 101
39 $ 2,474 169
40 $ 2,268 131
41 $ 2,013 119
42 $ 2,356 156
43 $ 2,257 168
44 $ 2,422 143
45 $ 1,932 109
46 $ 2,590 159
47 $ 1,701 117
48 $ 2,040 122
49 $ 1,908 102
50 $ 2,152 159
51 $ 1,705 72
52 $ 1,091 52
53 $ 1,285 101
54 $ 1,749 68
55 $ 1,899 93
56 $ 2,574 155
57 $ 1,460 67
58 $ 1,236 76
59 $ 1,451 55
60 $ 2,052 108
61 $ 1,246 55
62 $ 1,546 118
63 $ 2,338 156
64 $ 1,178 62
65 $ 1,664 109
66 $ 1,042 66
67 $ 1,667 79
68 $ 1,085 58
69 $ 1,690 116
70 $ 2,148 114
71 $ 1,724 92
72 $ 2,002 116
73 $ 2,903 155
74 $ 2,258 148
75 $ 1,496 72
76 $ 1,940 107
77 $ 1,626 77
78 $ 2,129 110
79 $ 1,749 107
80 $ 1,810 73
81 $ 2,003 110
82 $ 2,213 99
83 $ 1,453 57
84 $ 1,311 102
85 $ 1,037 65
86 $ 1,134 60
87 $ 2,371 124
88 $ 2,428 115
89 $ 2,467 169
 90 $ 2,638 164
91 $ 2,400 125
92 $ 2,107 91
93 $ 1,139 52
94 $ 1,306 96
95 $ 2,885 152
96 $ 1,100 87
97 $ 2,131 148
98 $ 1,811 80
99 $ 1,928 127
100 $ 1,276 67
101 $ 1,527 99
102 $ 2,176 113
103 $ 1,564 118
104 $ 2,142 165
ethod, the activity cost rate for quality inspection cost may be computed as follows: