Shriver Company makes two types of circuit boards. One is a high-caliber board designed to accomplish the most demanding tasks; the other is a low-caliber board designed to provide limited service at an affordable price. During its most recent accounting period, Shriver incurred $260,000 of inspection cost. Shriver recently established an activity-based costing system that classifies its activities into four categories. Categories and appropriate cost drivers follow. Direct Labor Hours Number of Batches Number of Inspectors Number of Square Feet High caliber 3,000 26 7 45,000 Low caliber 13,000 26 6 85,000 Total 16,000 52 13 130,000 Required: Allocate the inspection cost between the two products assuming that it is driven by (a) unit-level activities, (b) batch-level activities, (c) product-level activities, or (d) facility-level activities. Note that each allocation represents a separate alternative. In other words, the $260,000 of inspection cost will be allocated four times, once for each cost driver. (Do not round intermediate calculations.)

Shriver Company makes two types of circuit boards. One is a high-caliber board designed to accomplish the most demanding tasks; the other is a low-caliber board designed to provide limited service at an affordable price. During its most recent accounting period, Shriver incurred $260,000 of inspection cost. Shriver recently established an activity-based costing system that classifies its activities into four categories. Categories and appropriate cost drivers follow Direct Labor Hours 3,000 13,000 Number of Batches 26 26 Number of Inspectors 7 Number of Square Feet 45,000 85,000 High caliber Low caliber Total 16,000 52 130,000 Required Allocate the inspection cost between the two products assuming that it is driven by (a) unit-level activities (b) batch-level activities, (c) product-level activities, or (d) facility-level activities. Note that each allocation represents a separate alternative. In other words, the $260,000 of inspection cost will be allocated four times, once for each cost driver. (Do not round intermediate calculations.) Allocated Cost High-Caliber Low-Caliber Boards Boards 16,000 (a) Unit-level activities (b) Batch-level activities (c) Product-level activities (d) Facility-level activities