Exercise 5-26 (Static) Activity Levels and Cost Drivers [LO 5-2]
Steve’s Slop Shop, a small hamburger shop, has identified the resources used in its operations (assume each customer’s order is a batch for this example):
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 items.

 Required 1 Required 2 
Complete this question by entering your answers in the tabs below.
Classify its costs as unit-level, batch-level, product-level, or facility-level costs. (If an activity can be classified with more than
one selection, choose the option that contains ALL the appropriate classifications.)
Required 1 Required 2
Resources Cost Hierarchy
a. Bread
b. Hourly workers that cook hamburgers
c. Store rent
d. Ground beef
e. Catsup
f. Advertising for Triple-Burger special
g. Salary for the store managers
h. Utilities
i. $1-off-coupon for each order
j. Bag for each order