Betsy’s Brew is a successful brewery engaged in the development
and production of specialty micro brews. It uses manufacturing cost
hierarchy to allocate costs to various activities. During the past
year, it has incurred $1,450,000 of product development costs,
$2,500,000 of production line labor costs, $900,000 for production
setup costs, $500,000 in power costs for cooling beer and running
equipment and $1,750,000 for manufacturing facility management.
Using the manufacturing cost hierarchy, what is the total cost that
would be classified...