Which of the following choices correctly depicts the proper classification of direct materials used and management salaries? $\begin{array} { | l | l | l | }
\hline & \text { Direct Materials Used } & { \text { Management Salaries } } \
\hline \text { 1. } & \text { Batch level } & \text { Facility level } \
\hline \text { 2. } & \text { Batch level } & \text { Batch level } \
\hline \text { 3. } & \text { Unit level } & \text { Product-sustaining level } \
\hline \text { 4. } & \text { Unit level } & \text { Facility level } \
\hline \text { 5. } & \text { Product-sustaining level } & \text { Batch level } \
\hline
\end{array}$
A)1.
B)2.
C)3.
D)4.
E)5.

Question

Which of the following choices correctly depicts the proper classification of direct materials used and management salaries? $\begin{array} { | l | l | l | } 
\hline & \text { Direct Materials Used } & { \text { Management Salaries } } \
\hline \text { 1. } & \text { Batch level } & \text { Facility level } \
\hline \text { 2. } & \text { Batch level } & \text { Batch level } \
\hline \text { 3. } & \text { Unit level } & \text { Product-sustaining level } \
\hline \text { 4. } & \text { Unit level } & \text { Facility level } \
\hline \text { 5. } & \text { Product-sustaining level } & \text { Batch level } \
\hline
\end{array}$
A)1.
B)2.
C)3.
D)4.
E)5.

Quizplus · Accepted Answer

Direct materials used are typically allocated to the unit level, as they are directly related to the production of a product. Management salaries are usually allocated to the facility level, as they are related to the overall operation of the entire facility. Therefore, option 4, with direct materials allocated to the unit level and management salaries allocated to the facility level, is the best choice.

Which of the Following Choices Correctly Depicts the Proper Classification