Chattanooga, Inc. uses activity based costing with two categories of overhead: maintenance and inspections. Overhead rates for

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Chattanooga, Inc. uses activity based costing with two categories of overhead: maintenance and inspections. Overhead rates for the coming year are as follows: Activity Cost Driver Activity Overhead Rate Maintenance Machine Hours $22/MH Inspection Number of Inspections $750/inspection Use the following data to estimate the total product cost of the potential job: Direct materials $6,000 Direct labor $16,000 Machine-hours 400 Number of inspections 4 Direct labor-hours 800

$11,800

$33,800

$31,600

$22,000

Posted Date: May 31, 2024 02:02 AM

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