Figure 3 the Overdale Plant Has Two Categories of Overhead: Maintenance and Maintenance

Multiple Choice

Figure 3
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 labour hours and expected capacity of 80,000 direct labour hours. The following data has been 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 of inspections is 2,500.
-Refer to Figure 3. Using direct labour hours to assign overhead, the total cost of the potential job would be

A) £9,500
B) £6,000
C) £3,000
D) £1,600