Problem

Activity Levels and Cost Drivers Al’s Speedy Gourmet, a small hamburger shop, has identifi...

Activity Levels and Cost Drivers Al’s Speedy Gourmet, a small hamburger shop, has identified the following resources used in its operations (assume each customer’s order is a batch for this example):

a. Bread   f. Advertising for Triple-Burger special

b. Hourly help  g. Salary for the store managers

c. Store rent h.  Utilities

d. Ground beef  i. $1-off-coupon for each order

e. Catsup j. Bags for each order

Required

1. Classify its costs as unit-level, batch-level, product-level, or facility-level costs.

2. Suggest a proper driver for each of the above items.

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