Production of 500 chairs (job no. 555), was started in the first of January and completed three weeks later.The cost records for this job no. (555) show the following information:

Job No. 555 (500 Chairs)

Assembly department Finishing department

Cost of materials used on job 1700 1125

Direct labor cost 2025 1800

Direct labor hours 135 150

Machine-hours 62.5 25

Required

(1). Compute the overhead rate that should be used for each department in applying overhead costs to job no. 555.

(2). What is the total cost of job No. 555, and what is the unit cost of the product manufactured on this production order?

(3) Discuss in brief some of the advantages and disadvantages of Activity Based Costing Method