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Check my After reading an article about activity-based costing in a trade journal for the furniture industry, Santana Rey wondered if it was time to critically analyze overhead costs at Business Solutions. In a recent month, Santana found that setup costs, inspection costs, and utility costs made up most of its overhead. Additional information about overhead follows. Activity Setting up machines Inspecting components Providing utilities Cost $20,000 $ 7,500 $10,000 Driver 25 batches 5,000 parts 5,000 machine hours Overhead has been applied to output at a rate of 50% of direct labor costs. The following data pertain to Job 615 Direct materials Direct labor Batches Number of parts Machine hours $2,500 $3,500 2 batches 400 parts 500 machine hours Required: 1. Classify each of its three overhead activities as unit level, batch level product level, or facility level Check my Number of parts Machine hours 400 parts 500 machine hours Required: 1. Classify each of its three overhead activities as unit level, batch level, product level, or facility level. pints eBook Print Setting up machines Inspecting components Providing utilities points 2. What is the total cost of Job 615 if Business Solutions applies overhead at 50% of direct labor cost? Total cost ebook 3. What is the total cost of Job 615 if Business Solutions uses activity-based costing? Total manufacturing cost

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