Question
The Lislevand plant has two categories of overhead: maintenance and inspection. Costs expected for these categories for the coming year are as follows: Maintenance $138239
The Lislevand plant has two categories of overhead: maintenance and inspection. Costs expected for these categories for the coming year are as follows:
| Maintenance | $138239 |
| Inspection | 217933 |
The plants expected capacity is 75923 direct labour hours. The following data has been assembled for use in developing a bid for a proposed job.
| Direct materials | $1667 |
| Direct labour | $4970 |
| Machine hours | 8 |
| Number of inspections | 6.5 |
| Direct labour hours | 1329 |
Total expected machine hours for all jobs during the year is 44489 and the total expected number of inspections is 2235.
Using activity-based costing and the appropriate cost drivers, the total cost of the potential job would be:
Select one:
a. $659
b. $5629
c. $7296
d. $12872
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