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