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After reading an article about activity-based costing in a trade journal for the furniture industry,...

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Accounting

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After reading an article about activity-based costing in a trade journal for the furniture industry, Santana Rey decides to analyze overhead cost at Business Solutions, In a recent month, Santana found that setup costs, inspection costs, and utility costs made up most of the company's overhead. Additional information about overhead follows. The following data pertain to Job 615 . Required: 1. Classify each of the three overhead activities as unit level, batch level, product level, or facility level. 2. Assume Business Solutions allocates overhead cost using a plantwide rate based on 5,400 machine hours. Compute total product cost of Job 615 . 3. Assume Business Solutions uses activity-based costing. (a) Compute overhead activity rates. (b) Allocate overhead cost to Job 615. (c) Compute total product cost of Job 615 . Classify each of the three overhead activities as unit level, batch level, product level, or facility level

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