Figure 4-18 Ubben Manufacturing uses an activity-based costing system.The company produces Model X and Model Y.Information relating to the two products is as follows:
The following costs are reported:

- Refer to Figure 4-18.Machine-related overhead would be classified as a
A) unit-level activity.
B) batch-level activity.
C) product-level activity.
D) facility-level activity.

Question

Figure 4-18 Ubben Manufacturing uses an activity-based costing system.The company produces Model X and Model Y.Information relating to the two products is as follows:
 The following costs are reported:

- Refer to Figure 4-18.Machine-related overhead would be classified as a
A) unit-level activity. 
B) batch-level activity. 
C) product-level activity. 
D) facility-level activity.

Quizplus · Accepted Answer

Machine-related overhead is typically incurred for each unit produced, making it a unit-level activity.

Figure 4-18 Ubben Manufacturing Uses an Activity-Based Costing System