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XAD company is reviewing the behaviour of its various activities. XAD is considering various costs and has identified two categories of overhead: maintenance and inspection.

XAD company is reviewing the behaviour of its various activities. XAD is considering various costs and has identified two categories of overhead: maintenance and inspection. Costs expected for these categories for the coming year are as follows: Maintenance Inspection $120,000 200,000 The plant currently applies overhead using direct labor hours and expected capacity of 80,000 direct labor hours. The following data has been assembled for use in developing a bid for a proposed job: Direct materials $1,500 Di

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