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Puggle, Inc. has two categories of overhead: maintenance and inspection. Costs expected for these categories for the coming year are as follows: Maintenance $400,000 200,000
Puggle, Inc. has two categories of overhead: maintenance and inspection. Costs expected for these categories for the coming year are as follows: Maintenance $400,000 200,000 Inspection The following data have been assembled for use in developing a bid or a proposed job: Direct materials Direct labor Machine-hours Number of inspections Direct labor-hours 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: O O O O $3,000 $8,000 200 2 400 A. $36,800 B. $16,300 C. $11,000 D. $18,400
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