Ch 17 Serial Problem Saved Help Save& Exit Submit Check my work Serial Problem B
ID: 2338898 • Letter: C
Question
Ch 17 Serial Problem Saved Help Save& Exit Submit Check my work Serial Problem Business Solutions LO P3 After reading an article about activity-based costing in a trade journal for the furniture industry, Sentana Rey wondered ifit 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. 25 points ivity Driver $18,920 $4,900 4,900 parts s 9,800 4,900 machine hours 22 batches Inspecting eceponents Providing utilities eBook Print References Overhead has been applied to output at a rate of 55% of direct labor costs. The following data pertain to Job 615. Direct materials Direct labor Batches Munber of parts Machine hours $3,000 $3,600 2 batches 470 parts 530 machine hours Required 1. Classify each of its three overhead activities as unit level, batch level, product level, or facility level Setting up machines Unit level Providing ubites acility level Prev 10(1 E: Next >Explanation / Answer
total cost of Job 615
Direct Material
3000
Direct labor
3600
Overhead
55% of direct labor cost = 3600*55%
1980
total cost
8580
total cost of job615
Direct Material
3000
Direct labor
3600
Direct Overhead:
setting up machines = (18920/22)*2
(18920/22)*2
1720
Inspecting components = (4900/490)*470
(4900/4900)*470
470
providing utilize
(9800/4900)*530
1060
total cost of job615
9850
total cost of Job 615
Direct Material
3000
Direct labor
3600
Overhead
55% of direct labor cost = 3600*55%
1980
total cost
8580
total cost of job615
Direct Material
3000
Direct labor
3600
Direct Overhead:
setting up machines = (18920/22)*2
(18920/22)*2
1720
Inspecting components = (4900/490)*470
(4900/4900)*470
470
providing utilize
(9800/4900)*530
1060
total cost of job615
9850