Creative Tiles produces tiles embossed with leaf prints and other images in silhouette. When used on a wall or a floor, these tiles add color and texture, in addition to providing a focal point for the eye. The process for making a tile is relatively straightforward. The first step is to prepare a clay-like bisque containing aluminum silicates, sand, and other commodity inputs. Since each type of tile designed is a unique product (Creative Tiles’ customers can choose from over 100 leaf prints), the tiles are formed using a custom mold and printed via a custom screen-printing process. The next step is to fire (i.e., bake) a batch of up to 1,000 tiles in an oven at temperatures that exceed 2,000° F. After cooling, the tiles are finished, packed, and palleted. Using a forklift, workers move each pallet to the storeroom.

The following table lists eight costs incurred by Creative Tiles:

Cost # Description of Cost

1 Sand used

2 Oven rental for the year

3 Power for firing the oven

4 Molds used

5 Hourly wages to employees who mix the clay

6 CEO salary

7 Prepare leaf print for image

8 Using forklifts to move finished goods from the factory floor to the storeroom.

Required:

Classify each cost as per the cost hierarchy. (i.e., classify each cost as being a unit-, batch-, product-, or facility-level cost). Provide a brief rationale for each classification.