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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
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, Rey found that setup costs, inspection costs, and utility costs made up most of its overhead. Additional information about overhead follows Activity Drive Cost 19,780 23 batches Setting up machines Inspecting components Providing utilities S 4,400 4,400 parts S 10,000 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 6 15 Direct materials Direct labor Batches S 1,600 $ 2,600 3 batches Number of parts 400 parts Machine hours630 machine hours Required 1. What is the total cost of Job 6.15 if Business Solutions applies overhead at 50% of direct labor cost? (Omit the "$" sign in your response.) Total cost $ 2. What is the total cost of Job 6.15 if Business Solutions uses activity-based costing? (Do not round your intermediate calculations. Omit the "$" sign in your response.) Total cost s
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