Question

Kwik Pix is a large digital processing center that serves 130 outlets in grocery stores, service stations, camera and photo shops, and drug stores in 16 nearby towns. Kwik Pix operates 24 hours a day, 6 days a week. Classify each of the following activity costs of Kwik Pix as either unit-level, batch-level, product-level, or facility-level.
a. Color printing materials.
b. Photocopy paper.
c. Depreciation of machinery.
d. Setups for enlargements.
e. Supervisor's salary.
f. Ordering materials.
g. Pickup and delivery.
h. Commission to dealers.
i. Insurance on building.
j. Loading developing machines.

Answer 1

Answer:

a. Color printing materials.

Classify of activity costs: Batch or unit-level

b. Photocopy paper.

Classify of activity costs: Unit-level

c. Depreciation of machinery.

Classify of activity costs: Unit-level

d. Setups for enlargements.

Classify of activity costs: Batch or unit-level

e. Supervisor's salary.

Classify of activity costs: Facility-level

f. Ordering materials.

Classify of activity costs: Batch or product-level

g. Pickup and delivery.

Classify of activity costs: Batch or product-level

h. Commission to dealers.

Classify of activity costs: Unit-level

i. Insurance on building.

Classify of activity costs: Facility-level

j. Loading developing machines.

Classify of activity costs: Batch-level