Seguin Electronics, Inc. makes avionics equip- ment for private aircraft manufacturers. The production process takes place in three departments. The following costs were budgeted for February:

Required: 

1. Identify each of the costs as one of the following: 

(a) A unit-level activity. 

b) A batch-level activity. 

(c) A product-level activity. 

(d) A facility-level activity. 

2. Specify an appropriate cost driver for tracing to the products the costs that are associated with the various activity levels previously identified.

Transcribed Image Text:

Computer programming-production.. Custodial wages-plant Depreciation-machinery Depreciation-plant Electricity-machinery. Electricity-plant. Engineering design Equipment maintenance-parts and supplies Equipment maintenance-wages $ 18,000 4,500 120,000 60,000 11,600 7,400 45,000 2,900 14,100 Heating-plant. Inspection production Insurance-plant. 3,200 3,800 10,000 Property taxes 9,300 Raw materials, components, subassemblies 330,000 Setup wages 14,000