Question: MicroBrew is a successful brewery engaged in the development and production of specialty micro brews. It uses an ABC system. During the past year,

MicroBrew is a successful brewery engaged in the development and production of

MicroBrew is a successful brewery engaged in the development and production of specialty micro brews. It uses an ABC system. During the past year, it has incurred $1 250 000 of product development costs, $850 000 of materials handling costs, $2500 000 of production line labour costs, $700 000 for production set-up costs, $500 000 in power costs for cooling beer and running equipment and $1 500 000 for manufacturing facility management. Required In an ABC cost hierarchy, calculate the total cost that would be classified as: (a) facility-sustaining (b) product-sustaining (c) batch-level (d) unit-level.

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