$11$

Afer reading an article about activity$-$based costing in a trade journal for the fumiture industry. Santana Rey decides to analyze overhead cost at Business SoluJons. In a recent month, Santana found that setup costs. Inspection costs, and utility costs made up most of the company's overhead. Additional informatlon about overhead follows.

$\backslash$table$[[$Activity$,$Budgetied Cost,Bodgeted Activity Usage$],[$Set up$,518,48$Be$,22$ setups$],[$Inspection$,4,800,4,8$e$8$ parts inspected$],[$Utisties$,9,600,4,898$ machine hours $($MH$)],[$Total$,832,880,]]$

The following data pertain to Job $615.$

$\backslash$table$[[$Direct materlals,,$2,200],[$Direct labor:,,$3,6$e$0],[$Overhesd$,$$$,],[$Setups$,,6$ setups$],[\backslash$table$[[$Parts Inspected$],[$Nachine hours$]],,\backslash$table$[[600$ parts Inspected$],[519$ machine hours.$]]]]$

Required:

Classify each of the three overhoad activiles as unit level, batch level, product level, or facilty level.

$2$ Assume Business Solutions allocates overhead cost using a plantwide rate based on $4,800$ machine hours. Compute total product cost of Job $615.$

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 $615.$

Required $1$

Required $2$

Required $3$

Assume Business Solutions allocates overhead cost using a plantwide rase based on $4,800$ machine hours. Compute total product cost of $30b.615.$

Note: Do not round intermedate calculations. Round "Overhaad rase" so $2$ decmal places. Round other answers to nearest whple nymber.

$\backslash$table$[[$Alocate overhead to Job $615$ using plantwide rate$],[$Degartment$,\backslash$table$[[$Plantwide$],[$Overhead Rate$]],\backslash$table$[[$Machine$],[$Hours Used$]],$Overhead Allocated$],[$Nab $615],[$Total product cost of Job $515],[,$Oirect Materials,Direct Labor,Overhead,Produet Cast$],[$Job $815,-,,,]]$ mort of the company s overinced Addtro al Iformabon about overhead follown.

The following data pertnin $5$ lob $515.$

Required:

Cloully sach of the shree ovehesd satvoes $+-$ unt i evel, botch ievel, product leve, or facllty level.

Asume Business Solutons allocstes overhend coat asing a piartwide rste bsied on $4,800$ mschlne hours. Compute tota!

eroduct cost al Job $615.$

$($a$)$ Comoune overhesd nct$-$ty mtro.

Ibl A locste ove thesd cost $72$ Job $6$:$5$

la Compute sire prsduct cod of Jdb $615$

Recoarsed I

$615(6)$ Compute nurar pracuct doogt of Job G$15.$

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. Add tional information about overhead follows.

$\backslash$table$[[$Activity$,$Budgeted Cost$],[$Set up$,518,48$e$],[$Inspection$,4,800],[$Ut$1$lities,$9,600],[$Tgtad$,5.32,8800]]$

The following data pertain to Job $615.$

$\backslash$table$[[$Ddrect natarials,,$$2,208],[\backslash$table$[[$Odrect labor$],[$overchead$]],5,53,600],[$Setups$,,6$ setugs$],[\backslash$table$[[$Parts Inspected$],[$Machine houres$]],,\backslash$table$[[$sab parts inspected$],[510$ machine hours$]]]]$

Required:

Classily each of the three overhead activities as unit level, batch level, product level, or facility level.

Assume Business Solutions alacates overhead cost using a plantwide rate based on $4\mathrm{.}800$ machine hours. Compute total product cost of Job $615.$

Assume Business Solutions uses activity$-$based costing

$($a$)$ Compute overhead activity rates.

$($b$)$ Allecate overhead cQEt to $20b615$

$($c$)$ Compute total product cost of Job $615$

Required $1$

Required $2$

Required $3$

Classify each of the three overhead activities as unit level, batch level, product level. or facility level.

$\begin{array}{cc}\text{S}\text{e}\text{l}\text{u}\text{p}& ?\\ \text{I}\text{n}\text{s}\text{p}\text{e}\text{c}\text{t}\text{i}\text{o}\text{n}& ?\\ \text{U}\text{n}\text{i}\text{t}\text{e}\text{s}& ?\end{array}$

Rogrent $z$