5.2: As calculated in table 11, the total cost for job 6.15 using activity-based costing (ABC) is: _______________

5.3:

SP C After reading an article about activity-based costing in a trade journal for the furniture industry, Adria Lopez wondered if it was time to critically analyze overhead costs at Success Systems. In a recent month, Lopez found that setup costs, inspection costs, and utility costs made up most of its overhead. Additional information about overhead follows. Activity Cost Driver Inspecting components 7,500 5.000 parts Providing utilities ......$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 6.15 Direct materials.$2.500 chine hours...600 machine hours Required 1, what is the total cost of Job 6.15 if Success Systems applies overhead at 50% of direct labor cost? 2. What is the total cost of Job 6.15 if Success Systems uses activity-based costing? 3. Which approach to assigning overhead gives a better representation of the costs incurred to produce Job 6.15? Explain