Homework: C... Question 4, P5-38 (simila... HW Score: 44.03%, 8.81 of 20 points Save Part 1 of 15 O Points: 0 of 4 Papaya Bags (PB) is a designer of high-quality backpacks and purses. Each design is made in small batches Each spring, PB comes out with new designs for the backpack and for the purse. The company uses these designs for a year and then moves on to the next trend. The bags are all made on the same fabrication equipment that is expected to operate at capacity. The equipment must be switched over to a new design and set up to prepare for the production of each new butch of products. When completed each batch of products is immediately shipped to a wholesaler Shipping costs vary with the number of shipments Budgeted information for the year is as follows Click the icon to view the budgeted information ) Read the equitement BEER Requirement 1. Identify the cost hierarchy level for each cost category Cost Cost Hierarchy Level Direct materials purses Direct materials-backpacks Direct labor-purses Direct labor-backpacks Setup Shipping Design Plant utilities and administration Clear All Check Answer Help Me Solve This e Text Pages Get More Help Pearson - Requirements ca 1. Identify the cost hierarchy level for each cost category 2. Identify the most appropriate cost driver for each cost category. Explain briefly your choice of cost driver 3. Calculate the budgeted cost per unit of cost driver for each cost category 4. Calculate the budgeted total costs and cost per unit for each product line, 5. Explain how you could use the information in requirement 4 to reduce costs Print Done N atid oping costs vary will Data Table ory Papaya Bags Budget for Costs and Activities For the Year Ended February 28, 2014 Direct materials purses $ 382 800 Direct materials-backpacks 421200 Direct manufacturing labor-purses 89.100 Direct manufacturing labor--backpacks 105,300 Setup 49.735 Shipping 72,065 Design 167.000 Plant utilities and administration 208,000 $ 1,495 200 Total Other budget information follows Backpacks Purses Total Number of bags 5.850 3.300 9.150 Hours of production 1.560 2,600 4,160 131 Number of batches 72 203 3 2 5 Number of designs Print Done