After reading an article about activity$-$based costing in a trade journal for the furniture industry, Santana Rey decides to analyze overhead cost at Business Solutions. In a recent month, Santana found that setup costs, inspection costs, and utility costs made up most of the company$$s overhead. Additional information about overhead follows.

ActivityBudgeted CostBudgeted Activity UsageSet up$ $20,00025$setupsInspection$7,5005,000$parts inspectedUtilities$10,0005,000$machine hours $($MH$)$Total$ $37,500$

The following data pertain to Job $615.$

Direct materials$ $2,500$Direct labor$ $3,500$Overhead$ $\_\_\_\_\_\_\_\_\_$blank$$Setups$2$setupsParts inspected$400$parts inspectedMachine hours$600$machine hours

Required:

Classify each of the three overhead activities as unit level, batch level, product level, or facility level.

Assume Business Solutions allocates overhead cost using a plantwide rate based on $5,000$ machine hours. Compute total product cost of Job $615.$

Assume Business Solutions uses activity$-$based costing.

$($a$)$ Compute overhead activity rates.$($b$)$ Allocate overhead cost to Job $615.($c$)$ Compute total product cost of Job $615.$