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undefined 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
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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 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 $ 22,620 $ 4,500 $ 9,000 Driver 29 batches 4,500 parts 4,500 machine hours Overhead has been applied to output at a rate of 55% of direct labor costs. The following data pertain to Job 615. Direct materials Direct labor Batches Number of parts Machine hours $2,400 $3,100 6 batches 540 parts 650 machine hours 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 cost $ 6,520 XStep by Step Solution
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