Roberta, Inc., marufactures eliptical machines for several wel-known companies. The machines diffier significantly in their complexity and their manufacturing batch sizes. The folowing coats were incurred in 2017 Read the aquiamat Requirement 1. Classfy each of the proceding cots output unlt level batch level product uctaining or faclity suctaining. Explain cach anwer Cost lype Indind manutechning labor costa "ch Alipankin taat Alipparta direct manufac ring labor $535,000 b. Cost of indirect materials, $234,000 Cost incurred to t up machines cach timea diffarent product nceds to ba marufactured, $192,000 Dsigning os drawing process charts making angnaaring procasa changas for products, 236S0 d. Plant manegement, plent rent, and plant iurnce $498,000 Output urit level cos ane atch level costs aro acility custainig costs arc Product suataining cos arc aach typc of ellptical machine and that Roborta allacates al averhead costs using machine hours as the only allocation ba ow,at al, would the machines be miscaco? Dricty cxplain why. I ir Roberis utse dnly rnachine-hours to alloc8le overhead ost* to elipical machines As aresult, the complex eliplicel macine will be 1 Requirements 1. Classify each of the preceding costs as output unit-level, batch-level product-sustaining, or facility-sustaining. Explain each answer. machine, designed for professional use, is complex to make and is produced in many batches. The other machine, designed for home use, is simple to make and is produced in few batches. Suppose that Roberta needs the same number of machine-hours to make each type of elliptical machine and that Roberta allocates all overhead costs using machine-hours as the only allocation base. How, if at all, would the machines be miscosted? Briefly explain why 3. How is the cost hierarchy helpful to Roberta in managing its business? Print Done Indirect manufacturing labor costs such as supervision that supports direct manufacturing labor, $935,000 Procurement costs of placing purchase orders, receiving materials, and paying suppliers related to the number of purchase orders placed, $650,000 Cost of indirect materials, $234,000 a. b. c. d. Costs incurred to set up machines each time a different product e. Designing processes, drawing process charts, and making f. Machine-related overhead costs such as depreciation needs to be manufactured, $392,000 engineering process changes for products, $236,900 maintenance, production engineering, $865,000 (These resources relate to the activity of running the machines.) Plant management, plant rent, and plant insurance, $498,000 g. Requirement 3. How is the cost hierarchy helpful to Roberta in managing its business? The cost hierarchy can be helpful to Roberta in managing its business through: O A. Pricing and product mix decisions, cost reduction and process improvement decisions, design decisions, and planning and managing activities. B. educ ng he number o ndrect cost pools, crea ng ess homogeneous in rect cost poo s alo a ng more indirect costs o cost bed ts, and den ng cost o ects he t ut unit C. Identifying the cost benefit of implementing a simple costing system D. All of the above. Roberta, Inc., marufactures eliptical machines for several wel-known companies. The machines diffier significantly in their complexity and their manufacturing batch sizes. The folowing coats were incurred in 2017 Read the aquiamat Requirement 1. Classfy each of the proceding cots output unlt level batch level product uctaining or faclity suctaining. Explain cach anwer Cost lype Indind manutechning labor costa "ch Alipankin taat Alipparta direct manufac ring labor $535,000 b. Cost of indirect materials, $234,000 Cost incurred to t up machines cach timea diffarent product nceds to ba marufactured, $192,000 Dsigning os drawing process charts making angnaaring procasa changas for products, 236S0 d. Plant manegement, plent rent, and plant iurnce $498,000 Output urit level cos ane atch level costs aro acility custainig costs arc Product suataining cos arc aach typc of ellptical machine and that Roborta allacates al averhead costs using machine hours as the only allocation ba ow,at al, would the machines be miscaco? Dricty cxplain why. I ir Roberis utse dnly rnachine-hours to alloc8le overhead ost* to elipical machines As aresult, the complex eliplicel macine will be 1 Requirements 1. Classify each of the preceding costs as output unit-level, batch-level product-sustaining, or facility-sustaining. Explain each answer. machine, designed for professional use, is complex to make and is produced in many batches. The other machine, designed for home use, is simple to make and is produced in few batches. Suppose that Roberta needs the same number of machine-hours to make each type of elliptical machine and that Roberta allocates all overhead costs using machine-hours as the only allocation base. How, if at all, would the machines be miscosted? Briefly explain why 3. How is the cost hierarchy helpful to Roberta in managing its business? Print Done Indirect manufacturing labor costs such as supervision that supports direct manufacturing labor, $935,000 Procurement costs of placing purchase orders, receiving materials, and paying suppliers related to the number of purchase orders placed, $650,000 Cost of indirect materials, $234,000 a. b. c. d. Costs incurred to set up machines each time a different product e. Designing processes, drawing process charts, and making f. Machine-related overhead costs such as depreciation needs to be manufactured, $392,000 engineering process changes for products, $236,900 maintenance, production engineering, $865,000 (These resources relate to the activity of running the machines.) Plant management, plant rent, and plant insurance, $498,000 g. Requirement 3. How is the cost hierarchy helpful to Roberta in managing its business? The cost hierarchy can be helpful to Roberta in managing its business through: O A. Pricing and product mix decisions, cost reduction and process improvement decisions, design decisions, and planning and managing activities. B. educ ng he number o ndrect cost pools, crea ng ess homogeneous in rect cost poo s alo a ng more indirect costs o cost bed ts, and den ng cost o ects he t ut unit C. Identifying the cost benefit of implementing a simple costing system D. All of the above