Job 123 Requires $12,000 of Direct Materials,$5,500 of Direct Labor,500

question 183

Multiple Choice

Job 123 requires $12,000 of direct materials,$5,500 of direct labor,500 direct labor hours,and 300 machine hours.It also requires 6 hours of inspection at $40 per hour.Manufacturing overhead is computed at $30 per direct labor hour used and $40 per machine hour used.
The total amount charged for inspection

• A)is $40.
• B)is $40 × budgeted hours.
• C)is $240.
• D)does not figure into the total cost of the job.