Question: Eagleton Manufacturing is developing an activity based costing system to improve

Eagleton Manufacturing is developing an activity-based costing system to improve overhead cost allocation. One of the first steps in developing the system is to classify the costs of performing production activities into activity cost pools.

Using your knowledge of the four categories of activities, classify the cost of each activity in the following list into unit-, batch-, product-, or facility-level cost pools.
Cost Activity Cost Pool
a. Wages of maintenance staff
b. Labeling and packaging
c. Plant security
d. Ordering materials for a specific type of product
e. Wages of workers moving units of work between workstations
f. Factorywide electricity
g. Salary of a manager in charge of a product line
h. Sales commissions
i. Engineering product design
j. Supplies

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  • CreatedFebruary 07, 2014
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