Having itemized its costs for the first quarter of next year's budget, Galavic Corporation wants to install an activity-based costing system. First, it identified the activity cost pools in which to accumulate factory overhead; second, it identified the relevant cost drivers. (This was done in E5-24.)

Instructions

Using the activity cost pools identified in E5-24, classify each of those cost pools as either unit-level, batch-level, product- level, or facility-level.

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Machine set-up, indirect materials |Inspections Property taxes $ 4,000 $ 29,000 Oil, heating Electricity, plant lighting Engineering prototypes Depreciation, plant Electricity, machinery Custodial (machine maintenance) wages 16,000 4,000 19,000 Tests Insurance, plant Engineering design Depreciation, machinery Machine set-up, indirect labour 21,000 60,000 110,000 140,000 210,000 36,000 520,000 20,000 19,000