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Fairfield Manufacturing incurred the following costs during 2011 to produce its high- quality precision instruments. The company used an activity-based costing system Required: a. Classify
Fairfield Manufacturing incurred the following costs during 2011 to produce its high- quality precision instruments. The company used an activity-based costing system Required: a. Classify each activity as a unit-level, batch-level, product-level, or facility-level activity 1. Inspection of each batch produced. Batch or Proi v 2. Salaries of receiving clerks 3. Setup for each batch produced 4. Insurance on production facilities. Batch or Facili v Facility or Unit Batch or Facili V Depreciation on manufacturing equipment. Click to select V 6. Materials handling 7. Inventory storage Click to select Click to select V b. ldentify an appropriate cost driver (allocation base) for each activity 1. Inspection of each batch produced. (Click to select) Click to select) Click to select 4. Insurance on production facilities. (Click to select Click to select Click to select Click to select 2. Salaries of receiving clerks 3. Setup for each batch produced Depreciation on manufacturing equipment. 6. Materials handling 7. Inventory storage
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