>> Managerial Accounting
Colbie Components produces two types of wafers: wafer A and wafer B. A wafer is a thin slice of silicon used as a base for integrated circuits or other electronic compo- nents. The dies on each wafer represent a particular configuration designed for use by a particular end product. Colbie produces wafers in batches, where each batch corresponds to a particular type of wafer (A or B). In the wafer inserting and sorting process, dies are inserted, and the wafers are tested to ensure that the dies are not defective. Materials are ordered and received just in time for production. Terms for payment of materials are 2/10, n/30. Discounts are always taken (payment occurs on the last date possible).
The following activities are listed in Colbie's activity dictionary:
1. Developing test programs
2. Making probe cards
3. Testing products
4. Setting up batches
5. Engineering design
6. Handling wafer lots
7. Inserting dies
8. Purchasing materials
9. Receiving materials
10. Paying suppliers
11. Providing utilities (heat, lighting, and so on)
12. Providing space
1. Which activities are done each time a wafer is produced (unit-level activities)?
2. Which activities are done each time a batch is produced (batch-level activities)?
3. Which activities are done to enable production to take place (product-level activities)?
4. Which activities are done to sustain production processes (facility-level activities)?