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PLEASE SHOW WORK! 0. (1 point) Farm, Inc. currently applies overhead using direct labor hours and has an expected capacity of 50,000 direct labor hours.
PLEASE SHOW WORK!
0. (1 point) Farm, Inc. currently applies overhead using direct labor hours and has an expected capacity of 50,000 direct labor hours. The company has recently identified the activities of maintenance and inspection as the major contributors of manufacturing overhead. The company expects $50,000 in maintenance costs and $75,000 in inspection costs. The following data have been assembled for use in developing a bid for a proposed job: The total expected number of inspections is 1,500 , and the total expected number of machine hours for all jobs during the year is 25,000 . Using activity-based costing, and the appropriate activity drivers, the total cost of the potential job would be: a. $1,200 b. $4,500 c. $5,700 d. $3,700 e. $2,500 f. $5,000 g. $4,300 h. None of the aboveStep by Step Solution
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