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Check my work Campbell Company makes two types of circuit boards. One is a high-caliber board designed to accomplish the most demanding tasks, the other
Check my work Campbell Company makes two types of circuit boards. One is a high-caliber board designed to accomplish the most demanding tasks, the other is a low-caliber board designed to provide limited service at an affordable price. During its most recent accounting period, Campbell incurred $210,000 of inspection cost. Campbell recently established an activity-based costing system that classifies its activities into four categories. Categories and appropriate cost drivers follow Direct Labor Number of Number of Inspectors Number of Square Feet 30,000 75,000 105,000 Batches High caliber Low caliber Total Hours 7,000 14,000 21,000 24 48 15 Required Allocate the inspection cost between the two products assuming that it is driven by (a) unit-level activities, (b) batch-level activities, (c) product-level activities, or (d) facility-level activities. Note that each allocation represents a separate alternative. In other words, the $210,000 of inspection cost will be allocated four times, once for each cost driver. (Do not round intermediate calculations.) Allocated Cost High-Caliber Low-Caliber Boards Boards (a) Unit-level activities (b) Batch-level activities (c) Product-level activities (d) Facility-level activities
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