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 Cost Driver

Setting up machines $ $20,25027$ batches

Inspecting components $ $5,4005,400$ parts

Providing utilities $ $10,8005,400$ machine hours

Overhead has been applied to output at a rate of $45\%$ of direct labor costs. The following data pertain to Job $615.$

Direct materials $ $2,800$

Direct labor $ $3,000$

Batches $4$ batches

Number of parts $430$ parts

Machine hours $550$ machine hours

What is the total cost of Job $615$ if Business Solutions applies overhead at $45\%$ of direct labor cost?

What is the total cost of Job $615$ if Business Solutions uses activity$-$based costing?