Chapter 4, Problem 11E

Classify each of the following items of factory overhead as a(n) unit-level, batch-level, product-level, or facility-level cost.

1. a. Insurance on the building
2. b. Depreciation of building (straight-line method)
3. c. Depreciation of machinery (units-of-production method)
4. d. Polishing compounds
5. e. Machine lubricants
6. f. Wages of forklift driver
7. g. Building rent
8. h. Plant manager’s salary
9. i. Product inspector’s wages
10. j. Product design costs