Answer:
(a) Facility-level: First-shift supervisor’s salary.
(b) Unit-level: Powdered raw plastic.
(c) Product-level: Dies for casting plastic components.
(d) Unit-level: Depreciation on injection molding machines (assume units-of-activity depreciation).
(e) Batch-level: Changing dies on machines.
(f) Batch-level: Moving components to assembly department.
(g) Product-level: Engineering design.
(h) Facility-level: Employee health and medical insurance coverage.
Explanation:
In an Activity Based Costing (ABC), costs are grouped into four (4) categories according to the cost driver utilized. These are namely;
1. Facility-level costs: any cost of activity, that isn't tied to individual products and services but are utilized for the running of the company in general.
2. Batch-level cost: all costs of activity associated with a group of products and services.
3. Product-level cost: all costs of activity associated with individual products and services, irrespective of the batches or units produced.
4. Unit-level cost: is the total expenditure associated with producing an individual unit of product and service.
