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 $ 20,000 25 batches 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 615.

Direct materials $ 2,500 Direct labor $ 3,500 Batches 2 batches Number of parts 400 parts Machine hours 600 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 -

2. What is the total cost of Job 615 if Business Solutions applies overhead at 50% of direct labor cost?

Total Cost -

3. What is the total cost of Job 615 if Business Solutions uses activity-based costing? Total Manufacturing Cost -