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.

Activity Budgeted Cost Budgeted Activity Usage

Set up $ $16,28022$ setups

Inspection $5,1005,100$ parts inspected

Utilities $10,2005,100$ machine hours $($MH$)$

Total $ $31,580$

The following data pertain to Job $615.$

Direct materials $ $2,000$

Direct labor $ $3,400$

Overhead $ $\_\_\_\_\_$

Setups $4$ setups

Parts inspected $490$ parts inspected

Machine hours $630$ machine hours

Required:

$1.$ Classify each of the three overhead activities as unit level, batch level, product level, or facility level.

$2.$ Assume Business Solutions allocates overhead cost using a plantwide rate based on $5,100$ machine hours. Compute total product cost of Job $615.$

$3.$ 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 $615.$