Washburn Corporation produces flat-screen computer monitors. Consider the following selected costs that arose during the current year: 1. Direct materials used: $3,640,0002. Plant rent, utilities, and taxes: $1,229,0003. New technology design engineering: $2,040,0004. Materials receiving: $318,0005. Manufacturing-run/set-up charges: $115,0006. Equipment depreciation: $92,0007. General management salaries: $1,564,000Required: A. Briefly distinguish between batch-level and facility-level activities.B. Determine the cost of the firm's unit-level, batch-level, product-sustaining, and facility-level activities.
What will be an ideal response?
| A. | A batch-level activity is performed for each batch of products rather than for each |
| B. | Unit-level: $3,640,000 (1) |
| Product-sustaining: $2,040,000 (3) |
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