Hendee Cable Systems manufactures a variety of products for the fiber optic industry in its facility in San Bernardino, California. The following are examples of the activities performed by various personnel at Hendee.
a. Purchase orders are generated for raw materials purchases from suppliers. Hendee orders raw materials as needed to fill customer orders and maintains a very small amount of raw materials inventory.
b. Engineers conduct research and development activities aimed at identifying new technologies for data transmission.
c. Hendee conducts continuous quality inspections during the production process. All cable is 100 percent guaranteed to be free of defects.
d. Machine operators must calibrate production equipment whenever production is started on a new order.
e. Maintenance personnel regularly inspect the manufacturing facility’s heating and cooling systems to ensure adequate conditions within the manufacturing environment.
f. Hendee recently hired several new engineers to begin work on development of a new product line.
g. Accounting personnel were billed for and paid property taxes for the manufacturing facility.
h. Hendee launched a Web site to auction excess cable to interested parties.
i. A new facility was built to house all design engineers in one central location. This new facility will be depreciated over 20 years.

Classify each of the activities as a unit-level, batch-level, product-level, or facility-level activity.

  • CreatedMarch 11, 2015
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