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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.

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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 Activity Budgeted Coat Budgeted Activity Dange Set up $ 22,330 29 setups Inspection 5,100 parts inspected Utilities 5,100 nachine hours (M) Total $ 37,630 5, 100 10,200 The following data pertain to Job 615 Direct materials Direct labor Overhead Setups Parts inspected Machine hours $ 2,300 $ 3,400 $ 6 setup 470 parts inspected 620 machine hours 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 5,100 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. (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. Setup Inspection Usilities More Required 2 > 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 5,100 machine hours. Compute total product cost of Job 615 3. Assume Business Solutions uses activity-based costing.() Compute overhead activity rates. (6) Allocate overhead cost to Job 615. Compute total product cost of Job 615. Required 1 Required 2 Required 3 Assume Business Solutions allocates overhead cost using a plantwide rate based on 5.100 machine hours. Compute total product cost of Job 615. (Do not round Intermediate calculations. Round "Overhead rate to 2 decimal places. Round other answers to nearest whole number.) Overhead Allocated Allocate overhead to Job 615 using plantwide rate Plantwide Department Machine Overhead Rate Hours Used Job 615 Total product cost of Job 615 Direct Materiais Direct Labor Job 615 Overhand Product Cost 0 Required 1 Required 2 Required 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. (Round "Activity Rate" to 2 decimal places.) per MH a: Compute overhead activity rates Activity Activity Rate Setup per setup Inspection per part Utilities b. Allocate overhead to Job 615 based on actual activity usage Activity Allocltid Cost Setup Inspection Utilities Total allocated cost $ 0 c. Total product cost of Job 615 based on activity-based costing Job 615 Direct Materials Direct Labor Overhead Product Cost s 0

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