Figure 4-13 the Xiang Plant Has Two Categories of Overhead

question 8

Multiple Choice

Figure 4-13 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 labor hours and expected capacity of 50,000 direct labor 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.
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Refer to Figure 4-13.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.

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