81) Bombast Industries identified the following budgeted overhead activities and drivers:
Activity PoolsActivity Drivers
Setups15,000Number of setups5,000
Data associated with Job 786 follows.
Number of setups50
a. Calculate a unit-based overhead rate using machine hours.
b. What is the total cost of Job 786 using the above rate?
c. Calculate three activity-based overhead rates.
d. What is the cost of Job 786 using the above three activity rates?
e. Which method of overhead application (activity-based rates or budgeted factory overhead rate) is more accurate?