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Using activity-based costing, calculate the total cost of the following potential job using the given information below. There are two categories of overhead: utilities and
Using activity-based costing, calculate the total cost of the following potential job using the given information below. There are two categories of overhead: utilities and inspections. The expected costs for the coming year for utilities is $60,000 and for inspections is $105,000. Utility cost is allocated based on machine hours and inspections are allocated based on the number of inspections. The plant expects to have 80,000 direct labour hours in capacity The potential job would require the following: Direct materials of $3,000, direct labor of $4,500, machine hours of 150 and the number of inspections would be 2 The total expected machine hours for all jobs during the year is 20,000 and the total expected number of inspections is 1,000, Select one: .a. $9,225 b. $660 C. $8,160 d. 58,105
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