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Aher tebding an orticle about activity-based co: ovemead cost at business Solutions. In a recer cade journs for the furniture industry, Santana Rey decides to
Aher tebding an orticle about activity-based co: ovemead cost at business Solutions. In a recer cade journs for the furniture industry, Santana Rey decides to andyre Santana found that setup costs, inspection costs, end utily costs mado up aboul overtiead foltows The following date pertain to job 6 is. Requitred: Required: 1. Clissisy each of the three overhead activities as una level, batch level, product level, or focility livel 2. Assume Brsiness Soutions aliocates overthead cost using a plantwide rate based on 5.000 mactine bours. Corripute total produst cost of job 615 . ic Compute total product cos of dab 6.15 . preduct cost of Job 615 . (ilound "Overhead rate" to 2 decimal plares.) After reading an article about actwity based costing in a trade journal for the furniture industry, Santana Rey decides to analyze overhesd cost at Business 5olutions, In a recont month, Sontana found that setup costs, inspection costs, and utiliny costs made up most of the compsny's overhead. Additional information about overhead follows. The following data pertain to Job 615. Requiled: 1. Classify pech of the three overhead activities as unit level, batch level, product level, or focility level. 2 Assume Business Solutions allocetes overhead cost using a plantwide rate based on 5,000 machine hours. Compute total product cost of Job 615 3. Assume Bushess Solutions uses activity based costing. (a) Compute overthead act vity rates. (b) Allocate overhead cost to Job 615 . (c) Compute sotal peoduct cost of Job 615
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