After reading an article about activity-based costing in a

Reference no: EM13581465

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, Rey 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	$	14,200	20	batches
Inspecting components	$	4,900	4,900	parts
Providing utilities	$	9,800	4,900	machine hours

Overhead has been applied to output at a rate of 60% of direct labor costs. The following data pertain to Job 6.15.


Direct materials	$	2,800
Direct labor	$	4,000
Batches		7	batches
Number of parts		460	parts
Machine hours		570	machine hours

Required:

1.	Classify each of its three overhead activities as unit level, batch level, product level, or facility level.


Setting up machines	Batch level, Unit level or Facility level?
Inspecting components	Facility level, Unit level or Batch level
Providing utilities	Unit level, Batch level or Facility level

2.	What is the total cost of Job 6.15 if Business Solutions applies overhead at 60% of direct labor cost?(Omit the "$" sign in your response.)

Total cost???

3.	What is the total cost of Job 6.15 if Business Solutions uses activity-based costing? (Omit the "$" sign in your response.

Total cost?????

Reference no: EM13581465

Questions Cloud

A total of 12700 units were started and 11700 units were : froment corporation uses the weighted-average method in its process costing system. this month the beginning inventory

Portable enterprises produces two lines of mobile : portable enterprises produces two lines of mobile homesdouble-wide and single-wide. unit cost and revenue data

Wishaw inc produces and sells outdoor equipment on july 1 : wishaw inc. produces and sells outdoor equipment. on july 1 2014 wishaw inc. issued 150000000 of 20-year 12 bonds at a

Financial anaylsis on the web byp11-6 however instead of : financial anaylsis on the web byp11-6 however instead of using reportgallery go to click on company directories and

After reading an article about activity-based costing in a : after reading an article about activity-based costing in a trade journal for the furniture industry santana rey

Suppose a firm has a tax loss of 5 million in the current : suppose a firm has a tax loss of 5 million in the current period. the firmu2019s after-tax discount rate is 10. over

In music two notes are said to be an octave apart when one : in music two notes are said to be an octave apart when one note is exactly twice the frequency of the other. suppose

Suppose a firm is equally likely to earn 3 million this : suppose a firm is equally likely to earn 3 million this year or lose 2 million. the firm faces a tax rate of 40 on each

An insulated beaker with negligible mass contains liquid : an insulated beaker with negligible mass contains liquid water with a mass of 0.280kg and a temperature of 85.0?c .how

User Account

All Pages