Question

Doggle, Inc. has two categories of overhead: maintenance and inspection. Costs expected for these categories for the coming year are as follows:Maintenance$400,000Inspection200,000The following data have been assembled for use in developing a bid for a proposed job:Direct materials $3,000Direct labor $8,000Machine-hours 200Number of inspections 2Direct labor-hours 400The practical capacity of machine-hours for all jobs during the year is 12,500, and for inspections is 400. 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. $11,000B. $18,400C. $36,800D. $16,300

Answer 1

Answer:

$18,400

Explanation:

Using the appropriate cost driver (which is the most appropriate method of determining or calculating a particular cost. The Variable cost drivers might come in the form of costs per unit, hourly costs, or batch costs, among others. it can also be fixed costs, which could be in form of set-up costs.), the total cost of the potential job will be $18,400

The full diagram explaining the step be step procedure is in the attached image below.