Remaining Time: 2 hours, 12 minutes. 08 seconds Question Completion Status: Payton Bags (PB) is a designer of high-quality backpacks. Each design is made in small batches. Each spring. PB comes out with new designs for the for the backpack. The company uses these designs for a year and then moves on to the next trend. The bags are all made on the same fabrication equipment that is expected to operate at capacity. The equipment must be switched over to a new design and set up to prepare for the production of each new batch of products. When completed, each batch of products is immediately shipped to a wholesaler. Shipping costs vary with the number of shipments. Budgeted information for the year is as follows: Direct materials-backpacks 220,640.00 2,000 Direct manufacturing labour-backpacks 444,720.00 2,000 Shipping 15,992.00 200 Design 13,600.00 4 Plant utilities and administration 714,548.00 4,100 1. Identify the cost hierarchy level for each cost category. 2. Identify the most appropriate cost driver for each cost category. Explain briefly your choice of cost driver.