Activity Levels and Cost Drivers Richardson Industries manufactures industrial tools after creating a mold for each newly designed tool. Richardson personally inspects every unit during the trial run...

Activity Levels and Cost Drivers Richardson Industries manufactures industrial tools after creating a mold for each newly designed tool. Richardson personally inspects every unit during the trial run of a new mold and 10 percent of the units manufactured in the first three batches. Some of the activities of the firm follow:

Required

1. Classify each of the activities as a unit-level, batch-level, product-level, or facility-level activity.

2. Identify a proper cost driver for each activity in requirement 1.