Which of the options is considered a batch-level activity?

	a.	Machine set-up
	b.	Warehouse costs
	c.	Direct labor
	d.	Preparing the annual budget

Williamson Limited is expecting to invest in equipment that cost $120,000. The equipment has an 8-year life and no salvage value. Williamson uses straight-line depreciation. The equipment has a payback period of 5 years. The accounting rate of return is closest to

	a.	7.8%.
	b.	6.25%.
	c.	7.5%.
	d.	5%.