The following activities are carried out in Greenberry Company, a manufacturer of consumer goods.a. Direct labor workers assemble a product.b. Engineers design a new product.c. A machine is set up to process a batch.d. Numerically controlled machines cut and shape materials.e. The personnel department trains new employees concerning company policies.f. Raw materials are moved from the receiving dock to the production line.g. A random sample of 10 units in each batch is inspected for defects.Required:1. Classify each activity as a unit-level, batch-level, product-level, or facility-level cost.2. Provide at least one example of an allocation base (i.e., activity measure) that could be used to allocatethe cost of each activity listed above.
The following activities are carried out in Greenberry Company, a manufacturer of consumer goods.
a. Direct labor workers assemble a product.
b. Engineers design a new product.
c. A machine is set up to process a batch.
d. Numerically controlled machines cut and shape materials.
e. The personnel department trains new employees concerning company policies.
f. Raw materials are moved from the receiving dock to the production line.
g. A random sample of 10 units in each batch is inspected for defects.
Required:
1. Classify each activity as a unit-level, batch-level, product-level, or facility-level cost.
2. Provide at least one example of an allocation base (i.e., activity measure) that could be used to allocate
the cost of each activity listed above.
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