Perez 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 capacily. The equipment must be switched over to a new design and set up to prepare for the production of each new batch 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: E(Click the icon to view the budgeted information.) Data Table Read the requirements. Requirement 1. Identify the cost hierarchy level for each cost category. Budget for Costs and Activities Cost Cost Hierarchy Level For the Year Ended February 28, 2014 Direct materials-purses Direct materials-purses $ 317,200 Direct materials backpacks Direct materials backpacks 456,250 Direct labor purses Direct manufacturing labor-purses Direct labor-backpacks 97.600 Direct manufacturing labor backpacks 109,375 Setup 129,390 Setup Shipping Shipping 73,910 Design Design 167,500 Plant utilities and administration 243,000 Plant utilities and administration $ 1,594,225 Total Oher budget infornation follows: Backpacks Total Purses Number of bags 6,250 3,050 9,300 Hours of production 1,450 2,600 4,050 Choose from any drop-down list and then click Check Answer. ? 190 Number of batches 140 50 parts remaining Number of designs 14 3 2 5 Check