The Jewell 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 100,000 direct labour hours. The following data has been assembled for use in developing a bid for a proposed job. Bid prices are calculated as full manufacturing cost plus a 20 percent markup.
Total expected machine hours for all jobs during the year is 60,000, and the total expected number of inspections is 4,000.
Required:

Question

The Jewell 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 100,000 direct labour hours. The following data has been assembled for use in developing a bid for a proposed job. Bid prices are calculated as full manufacturing cost plus a 20 percent markup.
  Total expected machine hours for all jobs during the year is 60,000, and the total expected number of inspections is 4,000.
Required:

Quizplus · Accepted Answer

The Answer of The Jewell 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 100,000 direct labour hours. The following data has been assembled for use in developing a bid for a proposed job. Bid prices are calculated as full manufacturing cost plus a 20 percent markup.
  Total expected machine hours for all jobs during the year is 60,000, and the total expected number of inspections is 4,000.
Required:

The Jewell Plant Has Two Categories of Overhead: Maintenance and Inspection