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 companys overhead. Additional information about overhead follows.

Activity	Budgeted Cost	Budgeted Activity Usage
Set up	$ 17,940	23	setups
Inspection	4,500	4,500	parts inspected
Utilities	9,000	4,500	machine hours (MH)
Total	$ 31,440

The following data pertain to Job 615.

Direct materials	$ 2,200
Direct labor	$ 3,500
Overhead	$ _____
Setups	3	setups
Parts inspected	430	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 4,500 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.

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 4,500 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.) 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.)