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:

-Using the manufacturing cost hierarchy, what is the total cost that would be classified as batch-level activity costs?
A) $ 450,000
B) $ 350,000
C) $ 600,000
D) $ 625,000

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:
 
-Using the manufacturing cost hierarchy, what is the total cost that would be classified as batch-level activity costs?
A) $ 450,000 
B) $ 350,000 
C) $ 600,000 
D) $ 625,000

Quizplus · Accepted Answer

Batch-level activity costs are those costs that are incurred every time a batch of products is produced. The correct total cost classified as batch-level activity costs is $450,000.

Rock Bottom's Brew Is a Successful Brewery Engaged in the Development