Cost Driver Analysis Example //top\\ Online

= $1,000,000 / 50,000 machine hours = $20 per machine hour

= $500,000 / 2,500 inspections = $200 per inspection cost driver analysis example

| Activity | Resource Cost Driver | Total Annual Cost | |----------|----------------------|-------------------| | Machine operation | Machine hours | $1,000,000 | | Setup | Setup hours | $600,000 | | Quality inspection | Inspection hours | $500,000 | | Material handling | Number of material moves | $300,000 | | | | $2,400,000 | = $1,000,000 / 50,000 machine hours = $20