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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 Cost Driver
Setting up machines $ 16,280 22 batches
Inspecting components $ 4,400 4,400 parts
Providing utilities $ 11,200 5,600 machine hours

Overhead has been applied to output at a rate of 40% of direct labor costs. The following data pertain to Job 6.15.

Direct materials $ 2,500 Number of parts 400 parts
Direct labor $ 3,400 Machine hours 560 machine hours
Batches 3 batches

Required:
1.

What is the total cost of Job 6.15 if Business Solutions applies overhead at 40% 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 $

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