The Molotov Plant of Kaboom Industries Has Two Categories of Overhead

question 83

Multiple Choice

The Molotov plant of Kaboom Industries has two categories of overhead: maintenance and inspection. Costs expected for these categories for the coming year are as follows:
$\begin{array}{lr}\text { Maintenance } & \$ 50,000 \\\text { Inspection } & 75,000\end{array}$
The plant currently applies overhead using direct labor hours and expected cap acity of 50,000 direct labor hours. The following data have been assembled for use in developing a bid for a proposedjob:
$\begin{array}{lr}\text { Direct materials } & \$ 500 \\\text { Direct labor } & \$ 2,000 \\\text { Machine hours } & 500 \\\text { Number of inspections } & 4 \\\text { Direct labor hours } & 800\end{array}$ Total expected machine hours for all jobs during the year is 25,000, and the total expected number of inspections is 1,500.
Using activity-based costing and the appropriate activity drivers, the total cost of the potential job would be

• A)$1,200.
• B)$1,800.
• C)$3,700.
• D)$3,875.

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Definitions:

Symptom Stimuli

Triggers or cues that can precipitate or exacerbate symptoms of a psychological or physical disorder.

Psychopathology

The scientific study of mental disorders, including their symptoms, causes, and treatments.

Emotional Reactivity

The extent to which an individual responds emotionally to situations, indicating how sensitive they are to environmental stimuli.

Traumatic Memories

Memories of events that are emotionally disturbing or life-threatening, which can cause significant stress and impact an individual's mental health.