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Kingbird Inc. always stayed abreast of production methods, technology, and business insight. However, it recently realized it had ignored an important business consideration: the cost of MOH. The company had not considered more precise MOH cost allocation methods until now. To right this, managers examined the accounting system and interviewed production managers to understand costs. The following four key activity areas emerged as primary sources for all MOH, and related cost driver information is also included here. Activity Cost Quantity of Cost Driver Facility-level costs* $408,000 48,000 square feet Setup costs 185,500 7,000 setups Automation costs 946,000 43,000 machine hours Manual production costs 856,000 107,000 direct labor hours \"Includes rent, depreciation, and utilities (a) Organize the activity areas into the most appropriate cost hierarchy levels. Key Activity Cost Hierarchy a v Facility-level costs o Setup costs o Automation costs Tn Manual production costs e