=+FSD has determined that each of the two product lines represents a distinct value stream. It has also determined that $100000 of the allocated plant-level overhead costs represents occupancy costs. Product A occupies 20% of the plant’s square metres, product B occupies 20%, product C occupies 30% and product D occupies 15%. The remaining square metres are occupied by plant administrative functions or are not being used. Finally, FSD has decided that direct materials should be expensed in the period they are purchased, rather than when the materials are used. According to purchasing records, direct materials purchase costs during the period were:

Mechanical devices Electronic devices Product A Product B Product C Product D Direct materials (purchases) $170 $115 $225 $80 Required 1 What are the cost objects in FSD’s lean accounting system? Which of FSD’s costs would be excluded when calculating operating profit for these cost objects?