Peter Catalano's Verde Vineyards in Oakville, California produces three varieties of wine: Merlot, Viognier, and Pinot Noir. His winemaster, Kyle Ward, has identified the following activities as cost pools for accumulating overhead and assigning it to products. For each of Verde's fifteen activity cost pools, identify a probable cost driver that might be used to assign overhead costs to its three wine varieties.
6. Stemming and crushing. Cartfuls of bunches of grapes of each variety are separately loaded into machines which remove stems and gently crush the grapes.
14. Heating and air-conditioning of plant and offices. Labor hoursNumber of bottlesNumber of boxesNumber of gallons processedNumber of shipmentsNumber of cartfuls or labor hoursGallons of chemicalsNumber of cartfulsGallons of juiceGallons of wine or months of aging
15. Maintenance of buildings and equipment. Printing, repairs, replacements, and general maintenance are performed in the off-season.
Possible answers:
Numbers of gallons processed
Number of cartfuls
Number of shipments
Number of cartfuls or labor hours
Number of bottles
Number of boxes
Labor hours
Gallons of chemicals
Gallons of juice
Gallons of wine or months of aging