Shubelik Company Is Changing to an Activity-Based Costing Method

Multiple Choice

Shubelik Company is changing to an activity-based costing method. They have determined that they will use three cost pools. They are setups, inspections, and assembly. Which of the following would be used as the activity base for assembly?

A) number of direct labor hours
B) number of setups
C) number of inspections
D) number of units to be produced