Question

MicroBrew Northwest is a successful brewery engaged in the development and production of specialty micro brews. It uses an activity-based costing system. During the past year, it has incurred $1,250,000 of product development costs, $850,000 of materials handling costs, $2,500,000 of production line labor costs, $700,000 for production setup costs, $500,000 in power costs for cooling beer and running equipment, and $1,500,000 for manufacturing facility management.7.16

REQUIRED
In an ABC cost hierarchy, calculate the total cost that would be classified as:
A. Facility-sustaining.
B. Product-sustaining.
C. Batch-level.
D. Unit-level.



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  • CreatedJanuary 26, 2015
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