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Porter, Inc. has two categories of overhead: maintenance and inspection Costs expected for these categories for the coming year are as follows: Maintenance $400,000 Inspection

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Porter, Inc. has two categories of overhead: maintenance and inspection Costs expected for these categories for the coming year are as follows: Maintenance $400,000 Inspection 200,000 The following data have been assembled for use in developing a bid for a proposed job: Direct materials $4,000 Direct labor $6,000 Machine-hours -150 Number of 6 inspections Direct labor-hours 400 The practical capacity of machine-hours for all jobs during the year is 12,500, and for inspections is 400 These are the cost drivers for maintenance and inspection costs, respectively Using the appropriate cost drivers, the total cost of the potential job is: Select one: a $17.800 b. $18.400 c. $16,300 d. 515.000

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