Activity Cost Pools for Otto Dieffenbach & Sons, Inc
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Otto Dieffenbach & Sons, Inc. is a small manufacturing company in La Jolla that uses activity-based costing. Dieffenbach & Sons accumulates overhead in the following activity cost pools.
1. Hiring personnel.
2. Managing parts inventory.
3. Purchasing.
4. Testing prototypes.
5. Designing products.
6. Setting up equipment.
7. Training employees.
8. Inspecting machined parts.
9. Machining.
10. Assembling.
Instructions
For each activity cost pool, indicate whether the activity cost pool would be unit-level, batch-level, product-level, or facility-level.
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Solution Summary
Activity costing pools for Otto Dieffenbach & Sons, Inc is analyzed. The solution indicates whether the activity cost pool would be unit-level, batch-level, product-level, or facility-level.
Solution Preview
Batch-level - A cost associated with a batch of items, but not directly traceable to an individual item within the batch. For example, the cost to set up a machine to run a batch of 5,000 items is a batch-level cost. This ...
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