Reference no: EM132500286

Cost Hierarchy. The following activities and costs are for Ramos Corporation.

1. Salary of a supervisor responsible for one product line

2. Moving groups of products to the finished goods warehouse upon completion

3. Maintenance performed on the factory building

4. Factory building depreciation

5. Direct materials used by workers to assemble product

6. Machines set up to produce groups of products

7. Product designed for a specific customer

8. New product design

Required:

Question a. Determine whether each item is a facility-level, product- or customer-level, batch-level, or unitlevel cost.

Question b. Provide one example of an appropriate allocation base for each item. (For instance, an appropriate allocation base for item 5 is the quantity of direct materials used)