Question
The Molotov plant of Kaboom Industries has two categories of overhead: maintenance and inspection. Costs expected for these categories for the coming year are as
The Molotov plant of Kaboom Industries has two categories of overhead: maintenance and inspection. Costs expected for these categories for the coming year are as follows: Maintenance $50,000 Inspection $97,000 Machine Hours 49,000 hrs The plant currently applies overhead using machine hours. The following data have been assembled for use in developing a bid for a proposed job: Direct materials $500 Direct labor $2,000 Machine hours 500 Number of inspections 4 Direct labor hours 800 Using machine hours to assign overhead, the total cost of the potential job would be:
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