Décor Carpets Incurs a Variety of Costs in Producing Several

Essay

Décor Carpets incurs a variety of costs in producing several grades of carpet for the residential and commercial housing industries.The different grades and styles are manufactured in batches or production runs.The company uses activity-based costing to assign overhead costs to its different product lines.Selected costs are provided in the following table:
Required:
For each item identify the cost hierarchy and the cost driver.Use a (U)if the cost described is a unit-level cost,a (B)if a batch-level cost,a (P)if a product-level cost,or an (F)if a facility-level cost.Name a cost driver (for example,direct labor hours)that you believe might be appropriate for allocating that particular cost to units of products.