kimberlyvargas1864 kimberlyvargas1864

23-12-2022
Business

Answered

AAA, Inc. has two categories of overhead: maintenance and inspection. Costs expected for these categories for the coming year are as follows:
Maintenance $320,000
Inspection $160,000
The following data have been assembled for use in developing a bid for a proposed job:
Direct materials $2,400
Direct labor $6,400
Machine-hours 160
Number of inspections 2
Direct labor-hours 320
The practical capacity of machine-hours for all jobs during the year is 10,000, and for inspections is 320. These are the cost drivers for maintenance and inspection costs, respectively.
Using the appropriate cost drivers, the total cost of the potential job is:
Select one:
a. $8,800
b. $14,920
c. $29,840
d. $13,040

Answer :

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