Shriver Company makes two types of circuit boards. One is a high-caliber board designed to accomplish the most demanding tasks; the other is a low-caliber board designed to provide limited service at an affordable price. During its most recent accounting period, Shriver incurred $360,000 of inspection cost. Shriver recently established an activity-based costing system that classifies its activities into four categories. Categories and appropriate cost drivers follow.

Required
Allocate the inspection cost between the two products assuming that it is driven by
(a) Unit-level activities,
(b) Batch-level activities,
(c) Product-level activities,
(d) Facility-level activities.
Note that each allocation represents a separate alternative. In other words, the $360,000 of inspection cost will be allocated four times, once for each costdriver.

Transcribed Image Text:

Direct Number of Batches 20 20 Number of Square Feet 30,000 70,000 100,000 Number of Inspectors Labor Hours High caliber Low callber 4,000 14.000 Total 18,000 40