Question: Get solution Windsor Inc. always stayed abreast of production methods, technology, and business insight. However, it recently realized it had ignored an important business consideration:
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Windsor 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* $382,500 51,000 square feet Setup costs 229.500 9,000 setups Automation costs 924,000 42,000 machine hours Manual production costs 720,000 90,000 direct labor hours *Includes rent, depreciation, and utilities (a) Organize the activity areas into the most appropriate cost hierarchy levels. Key Activity Cost Hierarchy Facility-level costs SStep by Step Solution
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