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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 Setting up machinfes $17,280 4 batehes Providing utilitses 9,400 4,700 machine houre Overhead has been applied to output at a rate of 50% of direct labor costs. The following data pertain to Job $2,400 $3,200 Direct materials Direet labor Nunber of parts 7 batches 450 parta 670 Bachine hours Maeline hour Required: 1. Classify each of ts three overhead activities as unit level, batch level, product level, or facility level. Setting up machines Batch level Providing utlities Faclity level 0123:27 2. what is the total cost of Job 615 if Business Solutions applies overhead at 50% of direct labor cost? cost 3. What is the total cost of Job 615 if Business Solutions uses activity-based costing? Total manufacturing cost Prev- 6,of 8 Next