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Figure 3-1
the Xiang Plant Has Two Categories of Overhead  Maintenance £50,000 Inspection 75,000\begin{array}{lr}\text { Maintenance } & £ 50,000 \\\text { Inspection } & 75,000\end{array}

question 37

Multiple Choice

Figure 3-1
The Xiang plant has two categories of overhead: maintenance and inspection. Costs expected for these categories for the coming year are as follows:  Maintenance £50,000 Inspection 75,000\begin{array}{lr}\text { Maintenance } & £ 50,000 \\\text { Inspection } & 75,000\end{array} 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:  Direct materials £500 Direct labour £2,000 Machine hours 500 Number of inspections 4 Direct labour hours 800\begin{array}{lr}\text { Direct materials } & £ 500 \\\text { Direct labour } & £ 2,000 \\\text { Machine hours } & 500 \\\text { Number of inspections } & 4 \\\text { Direct labour 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.
-Refer to Figure 3-1. Using activity-based costing and the appropriate activity drivers, the total cost of the potential job would be

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