Herndon Brothers Inc. produces a variety of "all natural" household cleaning supplies that it manufactures and distributes to various grocery stores along the west coast. Which of the following types of costs wouldmost likely be a facility-level cost?

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Facility-level costs are costs incurred to support the entire production process or facility. Depreciation on the factory building is a facility-level cost as it is incurred to support the production process as a whole. A package product design cost (A) is a product-level cost, as it is specific to one product. Machine setup cost (B) is a batch-level cost as it is incurred each time a batch of product is manufactured. Utility costs for factory machinery (D) are a unit-level cost, as they are incurred for each unit of product produced.