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In: Accounting

A company uses the manufacturing cost hierarchy to allocate costs to various activities. During the past...

A company uses the manufacturing cost hierarchy to allocate costs to various activities. During the past year, it has incurred:

Costs Description
725,000 Product Development Costs
475,000 Materials handling costs
1,250,000 Production line labor costs
450,000 Production setup costs
250,000 Power costs (for cooling beer and running equipment)
875,000 Manufacturing facility management costs

A. Using the manufacturing cost hierarchy, what is the total cost that would be classified as unit-level activity costs?

B. Using the manufacturing cost hierarchy, what is the total cost that would be classified as batch-level activity costs?

C. Using the manufacturing cost hierarchy, what is the total cost that would be classified as product-level activity costs?

D. Using the manufacturing cost hierarchy, what is the total cost that would be classified as facility-level activity costs?

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ekkarill92 answered 1 year ago
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