The Xiang Plant Has Two Categories of Overhead: Maintenance and Inspection

question 35

Multiple Choice

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.
Using direct labour hours to assign overhead, the total cost of the potential job would be

• A) £2,500.
• B) £5,500.
• C) £4,000.
• D) £4,500.

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Definitions:

Lewis Structures

Lewis structures are diagrams that represent the valence electrons of atoms within a molecule, indicating the bonds between atoms and the lone pairs of electrons.

Double Line

In chemistry, it often represents a double bond between atoms, indicating that two pairs of electrons are shared in the bond.

Electron

A subatomic particle with a negative electrical charge, found in all atoms and acting as the primary carrier of electricity in solids.

Ammonia

A compound of hydrogen and nitrogen (NH3) characterized by a sharp smell, used in many industrial and cleaning products, and present in the metabolism of organisms.