Figure 3 the Overdale Plant Has Two Categories of Overhead: Maintenance and Maintenance

question 79

Multiple Choice

Figure 3
The Overdale 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 80,000 direct labour hours. The following data has been assembled for use in developing a bid for a proposed job:
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. Using direct labour hours to assign overhead, the total cost of the potential job would be

• A) £9,500
• B) £6,000
• C) £3,000
• D) £1,600

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Definitions:

Submarine Canyons

Deep, steep-sided valleys cut into the seabed of the continental slope, often extending well beyond the depth of the surrounding ocean floor.

Oceanic Plateau

Elevated regions of the ocean floor, characterized by a relatively flat topography, and often formed by volcanism or large igneous provinces.

Back-Arc Spreading

The formation of new oceanic crust behind a volcanic arc, resulting from the divergent movement of plates at a convergent boundary, a reiteration emphasizing plate tectonic mechanisms.

Mesozoic Jurassic

A geologic period within the Mesozoic Era, known for the dominance of dinosaurs and the presence of significant geological and climatic changes.