a. labour,

$1,500,000

\ Procurement costs of placing purchase orders, receiving materials, and paying suppliers that\ b. are related to the number of purchase orders placed,

$800,000

\ c.c Cost of indirect materials,

$450,000

\ Costs incurred to set up machines each time a different product needs to be manufactured,\ d.

$900,000

\ Output unit-level\ Batch-level\ Output unit-level\ Designing processes, drawing process charts, and making engineering process changes for\ e. products,

$900,000

\ Batch-level\ Machine-related overhead costs such as depreciation, maintenance, and production\ f. engineering,

$1,200,000

These resources relate to the activity of running the machines\ g. Plant management, plant rent, and insurance,

$950,000

.\ Output unit-level\ Facility-sustaining\ Requirement 2. Consider two boomboxes made by Teledor Inc. One boombox is complex to make and is made in many small batches. The other boombox is simple to make and is made in few large batches. Suppose that Teledor needs the same number of machine-hours to make either boombox. If Teledor allocated all overhead costs using machine-hours as the only allocation base, how, if at all, would the boomboxes be miscosted? Briefly explain why\ The complex boombox made in many batches will use significantly more batch-level overhead resources compared to the simple boombox that is made in a boombox will use more product-sustaining overhead resources because it is complex batches In addition, the complex\ Because each boombox requires the same number of machine-hours,\ both the simple and the complex boombox will be allocated the same amount of overhead costs per boombox\ if Teledor uses only machine-hours to allocate overhead costs to boomboxes.