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What is the total cost of Job 615 if Business Solutions uses activity-based costing? 40 After reading an article about activity-based costing in a trade
What is the total cost of Job 615 if Business Solutions uses activity-based costing?
40 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. 4.26 points Activity Setting up machines Inspecting components Providing utilities Cost Driver $25,810 29 batches $ 5,400 5,400 parts $10,800 5,400 machine hours eBook Overhead has been applied to output at a rate of 40% of direct labor costs. The following data pertain to Job 615. Direct materials Direct labor Batches Number of parts Machine hours $2,800 $3,300 2 batches 460 parts 620 machine hours Required: 1. Classify each of its three overhead activities as unit level, batch level, product level, or facility level. Setting up machines Inspecting components Providing utilities Batch level Unit level Facility level 2. What is the total cost of Job 615 if Business Solutions applies overhead at 40% of direct labor cost? Total cost $ 7,420 3. What is the total cost of Job 615 if Business Solutions uses activity based costing? Total manufacturing costStep by Step Solution
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