Washburn Corporation Produces Flat-Screen Computer Monitors

question 75

Essay

Washburn Corporation produces flat-screen computer monitors. Consider the following selected costs that arose during the current year:
1. Direct materials used: $3,640,000
2. Plant rent, utilities, and taxes: $1,229,000
3. New technology design engineering: $2,040,000
4. Materials receiving: $318,000
5. Manufacturing-run/set-up charges: $115,000
6. Equipment depreciation: $92,000
7. General management salaries: $1,564,000
Required:
A. Briefly distinguish between batch-level and facility-level activities.
B. Determine the cost of the firm's unit-level, batch-level, product-sustaining, and facility-level activities.

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Definitions:

Operant Conditioning

A type of learning in which behavior is strengthened if followed by a reinforcer or diminished if followed by a punisher.

Batteries

Devices consisting of one or more electrochemical cells that store and provide electrical energy by converting chemical energy.

Instruction

The act or process of teaching or providing knowledge to someone, often involving a systematic method or approach to imparting information.

Primary Reinforcers

Stimuli that are naturally reinforcing because they satisfy basic biological needs, such as food, water, or shelter.