Answer:
The calculation is shown below:-
Explanation:
a. Unit-level activities
Total direct labor hours = 27,000
Total inspection cost = $540,000
Per direct labor hours cost = $540,000 ÷ 27,000
= $20
Allocations
High caliber = 6,000 × $20
= $120,000
Low caliber = 21,000 × $20
= $420,000
b. Batch-level activities
Total number of batches = 40
Total inspection cost = $540,000
Cost per batch = $540,000 ÷ 40
= $13,500
Allocations
High caliber = $13,500 × 20
= $270,000
Low caliber = $13,500 × 20
= $270,000
c. Product-level activities
Total number of inspections = 5
Total inspection cost = $540,000
Cost per inspections = $540,000 ÷ 5
= $108,000
Allocation
High caliber = $108,000 × 3
= $324,000
Low Caliber = $108,000 × 2
= $216,000
d. Facility-level activities
Total number of square feet = 100,000
Total inspection cost = $540,000
Cost per square feet = $540,000 ÷ 100,000
= $5.4
Allocation
High caliber = 30,000 × $5.4
= $162,000
Low caliber = 70,000 × $5.4
= $378,000
