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

question 36

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 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.

Understand the five service characteristics (reliability, responsiveness, assurance, empathy, tangibles) and their importance in maintaining service quality.

Identify strategies for integrating customer feedback into managerial decisions to enhance service quality.

Recognize the importance and methods of maintaining a clean and professional appearance (tangibles) in service delivery.

Understand the concept of service gaps and strategies for mitigating them.

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Definitions:

Weber Test

A hearing test that uses a tuning fork to evaluate conductive and sensorineural hearing loss across both ears.

Rinne Test

A hearing test using a tuning fork to compare air conduction to bone conduction of sound.

Vestibule

An anatomical space or cavity at the entrance of some structures, especially the central part of the bony labyrinth in the inner ear, involved in balance.

Cochlea

A spiral-shaped, fluid-filled inner ear structure essential for hearing.