The following activities are carried out in Greenberry Company, a manufacturer of consumer goods: a. Direct labour workers assemble a product. b. Engineers design a new product. c. A machine is set up...

The following activities are carried out in Greenberry Company, a manufacturer of consumer goods:

a. Direct labour workers assemble a product.


b. Engineers design a new product.


c. A machine is set up to process a batch.


d. Automated machines cut and shape materials.


e. The HR department trains new employees concerning company policies.


f. Raw materials are moved from the receiving dock to the production line.


g. A random sample of 10 units is inspected for defects in each batch.


Required:


1. Classify each activity as a unit-level, batch-level, product-level, or facility-level cost.


2. Provide at least one example of an allocation base (i.e., activity measure) that could be used to allocate the cost of each activity listed above.



May 26, 2022
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