Figure 4-19
Attraction Corporation produces specially machined parts. The parts are produced in batches in one continuous manufacturing process. Each part is custom produced and requires special engineering design activity (based on customer specifications). Once the design is completed, the equipment can be set up for batch production. Once the batch is completed, a sample is taken and inspected to see if the parts are within the tolerances allowed. Thus, the manufacturing process has four activities: engineering, setups, machining, and inspecting. In addition, there is a sustaining process with two activities: providing utilities (plant wide) and providing space. Costs have been assigned to each activity using direct tracing and resource drivers:
Activity drivers for each activity have been identified and their practical capacities listed:
The costs of facility-level activities are assigned using machine hours.
-Refer to 4-19. What is (are) the facility-level activity(ies)?

Question

Figure 4-19
Attraction Corporation produces specially machined parts. The parts are produced in batches in one continuous manufacturing process. Each part is custom produced and requires special engineering design activity (based on customer specifications). Once the design is completed, the equipment can be set up for batch production. Once the batch is completed, a sample is taken and inspected to see if the parts are within the tolerances allowed. Thus, the manufacturing process has four activities: engineering, setups, machining, and inspecting. In addition, there is a sustaining process with two activities: providing utilities (plant wide) and providing space. Costs have been assigned to each activity using direct tracing and resource drivers:
  Activity drivers for each activity have been identified and their practical capacities listed:
  The costs of facility-level activities are assigned using machine hours.
-Refer to 4-19. What is (are) the facility-level activity(ies)?

Quizplus · Accepted Answer

Providing space is the only facility-level activity, as it is not directly related to the production of the machined parts and is required regardless of how many batches are produced. Set-ups and inspecting are batch-level activities, as they are performed for each batch of parts produced.

Figure 4-19 Attraction Corporation Produces Specially Machined Parts. the Parts Are Produced