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The overdale plant has two categories of overhead: maintenance and inspection. Costs expected for these categories for the coming year are as follows: The plant
The overdale plant has two categories of overhead: maintenance and inspection. Costs expected for these categories for the coming year are as follows: The plant currently applies overhead using direct labor hours and expected capacity of 80,000 direct labor hours. The following data has be assembled for use in developing a bid for a proposed job: Total expected machine hours for all jobs during the year are 40,000, and the total expected number inspections is 2,500. Refer to figure 4-3. Using direct labor hours to assign overhead the total cost of the potential job Refer to figure 4-3. Using the activity-based costing and the appropriate cost drivers, the total cost of potential job would be
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