Question
A company uses the manufacturing cost hierarchy to allocate costs to various activities. During the past year, it has incurred: Costs Description 725,000 Product Development
A company uses the manufacturing cost hierarchy to allocate costs to various activities. During the past year, it has incurred:
| Costs | Description |
| 725,000 | Product Development Costs |
| 475,000 | Materials handling costs |
| 1,250,000 | Production line labor costs |
| 450,000 | Production setup costs |
| 250,000 | Power costs (for cooling beer and running equipment) |
| 875,000 | Manufacturing facility management costs |
A. Using the manufacturing cost hierarchy, what is the total cost that would be classified as unit-level activity costs?
B. Using the manufacturing cost hierarchy, what is the total cost that would be classified as batch-level activity costs?
C. Using the manufacturing cost hierarchy, what is the total cost that would be classified as product-level activity costs?
D. Using the manufacturing cost hierarchy, what is the total cost that would be classified as facility-level activity costs?
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