Serial Problem Business Solutions LO P3 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, Santana found that setup costs, inspection costs, and utility costs made up most of its overhead. Additional information about overhead follows. Activity Setting up machines Inspecting components Providing utilities Cost Driver $20,000 25 batches $ 7,500 5,000 parts $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 615. Direct materials Direct labor Batches Number of parts Machine hours $2,500 $3.See 2 batches 400 parts 600 machine hours Required: 1. Classify each of its three overhead activities as unit level, batch level, product level, or facility level Answer is complete and correct. Batch level Setting up machines Inspecting components Providing utilities Unit level Facility level Batch level Setting up machines Inspecting components Providing utilities Unit level Facility level 2. What is the total cost of Job 615 if Business Solutions applies overhead at 50% of direct labor cost? Answer is complete but not entirely correct. Total cost $ 1,750 3. What is the total cost of Job 615 if Business Solutions uses activity-based costing? Answer is complete but not entirely correct. Total manufacturing COS! $ 7,750