Figure 3-5
the Overdale Plant Has Two Categories of Overhead $\begin{array}{ll}\text { Maintenance } & £ 120,000 \\\text { Inspection } & £ 200,000\end{array}$

question 36

Multiple Choice

Figure 3-5
The Overdale plant has two categories of overhead: maintenance and inspection. Costs expected for these categories for the coming year are as follows: $\begin{array}{ll}\text { Maintenance } & £ 120,000 \\\text { Inspection } & £ 200,000\end{array}$ The plant currently applies overhead using direct labour hours and expected capacity of 80,000 direct labour hours. The following data has been assembled for use in developing a bid for a proposed job: $\begin{array}{lr}\text { Direct materials } & £ 1,500 \\\text { Direct labour } & £ 5,000 \\\text { Machine hours } & 400 \\\text { Number of inspections } & 6 \\\text { Direct labour hours } & 750\end{array}$ Total expected machine hours for all jobs during the year are 40,000, and the total expected number of inspections is 2,500.
-Refer to Figure 3-5. Using activity-based costing and the appropriate cost drivers, the total cost of the potential job would be

• A)£9,230.
• B)£8,180.
• C)£2,250.
• D)£1,680.

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A widely used shortened form of a word or phrase, created to save time or space in written communication.

CPE

Continuing professional education, courses or activities required for professionals to maintain their licensing and competencies.

PE

Physical Education, a school subject focused on the development of physical fitness and skills.

CPH

If referring to Central Public Health, it's a sector or organization focused on promoting and protecting the health of the public; otherwise, clarification is needed for a specific definition.