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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

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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. Driver Cost Activity Setting up machinfes Inspecting components Providing utilities $21,600 $ 5,000 $10,000 27 batches 5,e00 parts 5,080 machine hours Overhead has been applied to output at a rate of 60 % of direct labor costs. The following data pertain to Job 615 Direct naterials Direct lebor Batches Number of parts Machine hours $2,300 $3,600 4 batches 560 parts 640 machine hours Required: 1. Clossify each of its three overheed activities as unit level, batch level, product level, or facility level. 3. What is the total cost of Job 615 if Business Solutions uses activity-based costing? Total manufacturing cost

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