S4-8 Classifying costs within the cost hierarchy (Learning Objective 2)

Hosbach Manufacturing produces a variety of plastic containers using an extrusion blow molding process. The following activities are part of Hosbach Manufacturing’s operating process:

1. A plant manager oversees the entire manufacturing operation.

2. Each container product line has a product line manager.

3. Each type of container has its own unique molds.

4. Each container is cut from the mold once the plastic has cooled and hardened.

5. Rent is paid for the building that houses the manufacturing processes.

6. Plastic resins are used as the main direct material for the containers.
7. The extrusion machine is calibrated for each batch of containers made.
8. Patents are obtained for each new type of container mold.
9. Routine maintenance is performed on the extrusion machines.
10. The sales force incurs travel expenses to attend various trade shows throughout the country to market the containers.
Classify each activity as either unit-level, batch-level, product-level, or facility-level.