Intermediate Managerial Accounting unit 1

Unit 1 Question 1: {21 marks total} Guerrero Jr. Inc. manufactures baseball bats for different well-known companies. The baseball bats differ signicantly in their complexity and the batch sizes in which they are manufactured. The following costs were incurred in 2020: {3 marks each} a. Indirect manufacturing labour costs such as supervision that supports direct manufacturing labour, $1,500,000. b. Procurement costs of placing purchase orders, receiving materials. and paying suppliers that are related to the number of purchase orders placed, 5800.000. c. Cost of indirect materials. 54mm. d. Costs incurred to set up machines each time a different product needs to be manufactured, $900,000. e. Designing processes, drawing process charts. making engineering process changes for products, 5900300. f. Machine-related overhead costs such as depreciation, maintenance, production engineering, $1,2DD.DDU. These resources are related to the activity of running the machines. g. Plant management, plant rent. and insurance. $950.0D0. Required Classify each of the preceding activities as output unit-level, batch-level, product-sustaining, or facility- sustaining. Explain your answers