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tone Cold Brew is a successful brewery engaged in the development and production of specialty micro brews

Accounting

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tone Cold Brew is a successful brewery engaged in the development and production of specialty micro brews. It uses manufacturing cost hierarchy to allocate costs to various activities.

 

During the past year, it has incurred:

Cost

Description$725,000

Product development costs$475,000

Materials handling costs$1,250,000

Production line labor costs$450,000

Production setup costs$250,000

Power costs (for cooling beer and running equipment)$875,000

Manufacturing facility management costs

 

 

 

Using the manufacturing cost hierarchy, what is the total cost that would be classified as unit-level activity costs?

Select one:

A. $1,945,000

B. $ 425,000

C. $1,975,000

D. $1,250,000