The Xiang plant has two categories of overhead: maintenance and inspection.
Costs expected for these categories for the coming year are as follows:
The plant currently applies overhead using direct labour hours and expected capacity of 50,000 direct labour hours.The following data have been assembled for use in developing a bid for a proposed job:
Total expected machine hours for all jobs during the year is 25,000,and the total expected number of inspections is 1,500.
-Refer to the figure.Using activity-based costing and the appropriate activity drivers,what would be the total cost of the potential job?
A) $1,200
B) $1,800
C) $3,700
D) $3,875
Correct Answer:
Verified
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