After reading an article about activity-based costing in a trade journal for the furniture industry, Santana...

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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 Set up Inspection Utilities Total Direct materials Direct labor Budgeted Cost $ 21,840 The following data pertain to Job 615, $ 2,600 $ 3,100 S Overhead Setups Parts inspected Machine hours 5,100 10,200 $ 37,140 Budgeted Activity Usage 26 setups 5,100 parts inspected 5,100 machine hours (MH) 7 setups 498 parts inspected 500 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. 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. Required 1 Required 2 Assume Business Solutions allocates overhead cost using a plantwide rate based on 5,100 machine hours. Compute total product cost of Job 615. (Do not round intermediate calculations, Round "Overhead rate" to 2 decimal places. Round other answers to nearest whole number) Required 3 Allocate overhead to Job 615 using plantwide rate Plantwide Department Overhead Rate Job 615 Total product cost of Job 615 Job 615 Direct Materials Machine Hours Used Direct Labor Overhead Allocated Overhead Required Product Cost 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. Required 1 Required 2 Required 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. (Round "Activity Rate" to 2 decimal places.) a. Compute overhead activity rates Activity Activity Rate per setup per part per MH b. Allocate overhead to Job 615 based on actual activity usage Activity Allocated Cost Setup Inspection Utilities Setup Inspection Utilities Total allocated cost 0 B b. Allocate overhead to Job 615 based on actual activity usage Activity Allocated Cost Setup Inspection Utilities Total allocated cost $ 0 c. Total product cost of Job 615 based on activity-based costing Job 615 Direct Materials Direct Labor Overhead Product Cost $ < Required 2 Required 3 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 Set up Inspection Utilities Total Direct materials Direct labor Budgeted Cost $ 21,840 The following data pertain to Job 615, $ 2,600 $ 3,100 S Overhead Setups Parts inspected Machine hours 5,100 10,200 $ 37,140 Budgeted Activity Usage 26 setups 5,100 parts inspected 5,100 machine hours (MH) 7 setups 498 parts inspected 500 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. 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. Required 1 Required 2 Assume Business Solutions allocates overhead cost using a plantwide rate based on 5,100 machine hours. Compute total product cost of Job 615. (Do not round intermediate calculations, Round "Overhead rate" to 2 decimal places. Round other answers to nearest whole number) Required 3 Allocate overhead to Job 615 using plantwide rate Plantwide Department Overhead Rate Job 615 Total product cost of Job 615 Job 615 Direct Materials Machine Hours Used Direct Labor Overhead Allocated Overhead Required Product Cost 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. Required 1 Required 2 Required 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. (Round "Activity Rate" to 2 decimal places.) a. Compute overhead activity rates Activity Activity Rate per setup per part per MH b. Allocate overhead to Job 615 based on actual activity usage Activity Allocated Cost Setup Inspection Utilities Setup Inspection Utilities Total allocated cost 0 B b. Allocate overhead to Job 615 based on actual activity usage Activity Allocated Cost Setup Inspection Utilities Total allocated cost $ 0 c. Total product cost of Job 615 based on activity-based costing Job 615 Direct Materials Direct Labor Overhead Product Cost $ < Required 2 Required 3

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Lets break down the requirements step by step Required 1 Classifying Overhead Activities Based on th... View the full answer