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uneau Company manufactures a variety of products in a single facility. Consultants hired by the company to do an activity-based costing analysis have identified the
uneau Company manufactures a variety of products in a single facility. Consultants hired by the company to do an activity-based costing analysis have identified the following activities carried out in the company on a routine basis: Required: Classify each of the above activities as a unit-level, batch-level, product-level, or facility-level activity. For each of the above activities, suggest an activity measure that could be used to allocate its costs to products. Activity Level Possible Activity Measures a. Machines are set up between batches of different products. b. The company's grounds crew maintains planted areas surrounding the factory. c. A percentage of all completed goods are inspected on a random basis. d. Milling machines are used to make components for products. e. Employees are trained in general procedures. f. Purchase orders are issued for materials required in production. g. The maintenance crew does routine periodic maintenance on general-purpose equipment. h. The plant controller prepares periodic accounting reports. i. Material is received on the receiving dock and moved to the production area. j. The engineering department makes modifications in the designs of products. k. The human resources department screens and hires new employees. l. Production orders are issued for jobs
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