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Guerrero Jr. Inc. manufactures baseball bats for different well-known companies. The baseball bats differ significantly in their complexity and the batch sizes in which they
Guerrero Jr. Inc. manufactures baseball bats for different well-known companies. The baseball bats differ significantly in their complexity and the batch sizes in which they are manufactured. The following costs were incurred in 2020: (3 marks each) a. b. C. d. Indirect manufacturing labour costs such as supervision that supports direct manufacturing labour, $1,500,000 Procurement costs of placing purchase orders, receiving materials, and paying suppliers that are related to the number of purchase orders placed, $800,000. Cost of indirect materials, $450,000. Costs incurred to set up machines each time a different product needs to be manufactured, $900,000 Designing processes, drawing process charts, making engineering process changes for products, $900,000. Machine-related overhead costs such as depreciation, maintenance, production engineering, $1,200,000. These resources are related to the activity of running the machines. Plant management, plant rent, and insurance, $950,000. e. f. 8 Required: Classify each of the preceding activities as output unit-level, batch-level, product-sustaining, or facility- sustaining. Explain your answers
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