Answer and Explanation:
The cost driver refers to the change in the activity units level with respect to the change in activity cost
There are various activities held and according to that the cost driver is also there so that it could be allocated
Just like
Activities Cost driver
1) Materials handling - Number of Requisitions
2) Machine setups - Number of Setups
3) Factory machine maintenance - Machine Hours Used
4) Factory supervision - Number of Employees
5) Quality control - Number of Inspections
Material handling should be based on allocating in the number of requisitions
And the same is applied for other activities
