. LO.3 (Levels of costs) Carpenter Inc. designs industrial tooling parts and makes the molds for those parts. The following activities take place when the company creates a new mold. Classify each cost as unit level (U), batch level (B), product/process level (P), or organizational level (O). a. Consultation with equipment manufacturer on design specifications b. Engineering design of mold c. Creating mold d. Moving materials from warehouse for test quantity e. Direct materials for test quantity to judge conformity to design specifications f. Inspecting test quantity g. Preparing design specification changes based on test molds h. Depreciating small kiln used solely for test quantities i. Depreciating manufacturing building

. LO.3 (Levels of costs) Carpenter Inc. designs industrial tooling parts and makes the molds for those parts. The following activities take place when the company creates a new mold. Classify each cost as unit level (U), batch level (B), product/process level (P), or organizational level (O). a. Consultation with equipment manufacturer on design specifications b. Engineering design of mold c. Creating mold d. Moving materials from warehouse for test quantity e. Direct materials for test quantity to judge conformity to design specifications f. Inspecting test quantity g. Preparing design specification changes based on test molds h. Depreciating small kiln used solely for test quantities i. Depreciating manufacturing building

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 36P: Reducir, Inc., produces two different types of hydraulic cylinders. Reducir produces a major...

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