Reference no: EM132509447

Rock Bottom's 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

Question 1: Using the manufacturing cost hierarchy, what is the total cost that would be classified as batch-level activity costs?

A.$625,000

B.$600,000

C.$350,000

D.$450,000