Dynamic Products, Inc. manufactures a wide variety of products in its planet in Macon, Georgia. Management has identified the following manufacturing and administrative activities.
1. Special equipment is used to add a protective finish to a various products.
2. Purchase order as issued to acquire raw materials.
3. Factory managers run training programs in quality control for new employees.
4. Machine setups are necessary for each batch of goods produced.
5. Janitors clean the offices and the planet floor each evening.
6. Warehouse personnel pull the stock needed for production and move the materials to the plant floor.
7. Receiving clerks inspect incoming materials and prepare receiving reports.
8. Quality control inspectors test each bath of goods before it is stored or shipped.
9. Payroll clerks process the factory workers time cards and prepare weekly paychecks for distribution.
10. Engineers develop new-product specifications and redesign existing products as needed.
A. Classify each of the activities listed as unit-level, batch level, product -level, or facility level activity.
B. Identify a cost driver for each of the activities that could be used to apply costs to dynamics products.
C. For each activity, identify one or ore traceable costs.
D. Explain how the hierarchy provides insights that affect decision making.

  • CreatedAugust 26, 2013
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