Levels of cost drivers. Each of the following is a potential activity driver. Identify the most likely level of each driver with U for a unit-level driver, B for a batch-level diver and P for a product-level driver.Loads of materials moved Materials costPounds of finished product producedShipments to customers (where no finished goods inventory is maintainedNumber of part numbers used Machine hours Purchase orders issued (where large materials inventories are maintainedDirect costsPieces inspected (where output is 100% inspected)Pieces inspected (where only the first piece is inspected after each setup)

UNIT LEVEL: Amount that occurs vary in direct proportionate to the unit produced. BATCH LEVEL: Cost…

Answered: Levels of cost drivers. Each of the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Levels of cost drivers. Each of the following is a potential activity driver. Identify the most likely level of each driver with U for a unit-level driver, B for a batch-level diver and P for a product-level driver.

Loads of materials moved
Materials cost
Pounds of finished product produced
Shipments to customers (where no finished goods inventory is maintained
Number of part numbers used
Machine hours
Purchase orders issued (where large materials inventories are maintained
Direct costs
Pieces inspected (where output is 100% inspected)
Pieces inspected (where only the first piece is inspected after each setup)

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