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 direct labor hours to assign overhead, the total cost of the potential job would be
A) $2,000.
B) $4,000.
C) $4,500.
D) $5,500.
Correct Answer:
Verified
Correct Answer:
Verified
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