Hamilton, Inc., manufactures boom boxes (music systems with radio, cassette, and compact disc players) for several well-known companies. The boom boxes differ significantly in their complexity and their manufacturing batch sizes. The following costs were incurred in 2019:

a. Indirect manufacturing labor costs such as supervision that supports direct manufacturing labor, $1,450,000

b. Procurement costs of placing purchase orders, receiving materials, and paying suppliers related to the number of purchase orders placed, $850,000

c. Cost of indirect materials, $275,000

d. Costs incurred to set up machines each time a different product needs to be manufactured, $630,000

e. Designing processes, drawing process charts, making engineering process changes for products, $775,000

f. Machine-related overhead costs such as depreciation, maintenance, production engineering, $1,500,000 (These resources relate to the activity of running the machines.)

g. Plant management, plant rent, and plant insurance, $925,000

Required

1. Classify each of the preceding costs as output unit-level, batch-level, product-sustaining, or facility sustaining.

(3 marks)