Richardson Industries manufactures industrial tools after creating a mold for each newly designed tool. Richardson personally inspects

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Richardson Industries manufactures industrial tools after creating a mold for each newly designed tool. Richardson personally inspects every unit during the trial run of a new mold and 10 percent of the units manufactured in the first three batches. Some of the activities of the firm follow:
a. Designing molds
b. Creating molds
c. Inspecting molds
d. Modifying molds
e. Setting up production
f. Requesting and moving materials
g. Machining
h. Insuring equipment
i. Paying suppliers
j. Heating the factory

Required
1. Classify each of the activities as a unit-level, batch-level, product-level, or facility-level activity.
2. Identify a proper cost driver for each activity in requirement 1.

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Related Book For  book-img-for-question

Cost management a strategic approach

ISBN: 978-0073526942

5th edition

Authors: Edward J. Blocher, David E. Stout, Gary Cokins

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