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

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Accounting

A company uses the manufacturing cost hierarchy to allocatecosts to various activities. During the past year, it hasincurred:

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

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

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

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

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

Answer & Explanation Solved by verified expert
4.4 Ratings (856 Votes)
Based on the cost driver assigned to each expense the same canbe assigned as unit level batch level    See Answer
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