St Helena Cellars Produces Wine in Northern California

Essay

St. Helena Cellars produces wine in northern California. Consider the following selected costs that arose during the current year:
1. Safety costs at winery
2. Truckload shipping costs
3. Building maintenance costs
4. Bottle and cork cost
5. Development cost of new, after-dinner wine
6. Tasting and testing costs
Required:
A. A unit-level activity is performed for each unit of production. In contrast, a product-sustaining activity is needed to support an entire product line. The latter is not necessarily performed each time a new unit or batch of products is manufactured.
A. Briefly distinguish between unit-level and product-sustaining activities.
B. 1. Facility-level
2. Batch-level
3. Facility-level
4. Unit-level
5. Product-sustaining
6. Batch-level
B. Classify the six costs listed as arising from a unit-level, batch-level, product-sustaining, or facility-level activity.