Figure 4-13 the Molotov Plant of Kaboom Industries Has Two

Multiple Choice

Figure 4-13 The Molotov plant of Kaboom Industries 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 labor hours and expected capacity of 50,000 direct labor hours. The following data have been assembled for use in developing a bid for a proposed job:
Total expected machine hours for all jobs during the year is 25,000, and the total expected number of inspections is 1,500.
Refer to Figure 4-13. Using activity-based costing and the appropriate activity drivers, the total cost of the potential job would be

A) $1,200.
B) $1,800.
C) $3,700.
D) $3,875.