Reference no: EM132521857

Question - Rock Bottom's Brew is a successful brewery engaged in the development and production of specialty micro brews. It uses manufacturing cost hierarchy to allocate costs to various activities.

During the past year, it has incurred:

Cost

Description $725,000

Product development costs $475,000

Materials handling costs $1,250,000

Production line labor costs $450,000

Production setup costs $250,000

Power costs (for cooling beer and running equipment) $875,000

Manufacturing facility management costs

Using the manufacturing cost hierarchy, what is the total cost that would be classified as product-level activity costs?