Question

Costs expected for these categories for the coming year are as follows: Maintenance $110376 Inspection $195640...

Costs expected for these categories for the coming year are as follows:

Maintenance

$110376

Inspection

$195640

The plant’s expected capacity is 74951 direct labour hours. The following data has been assembled for use in developing a bid for a proposed job.

Direct materials

$?

Direct labour

$6164

Machine hours

390

Number of inspections

8

Direct labour hours

638


Total expected machine hours for all jobs during the year is 42719 and the total expected number of inspections is 2323.

Using activity-based costing and the appropriate cost drivers, if the total cost of the proposed job is $10475 what is the direct materials used in the job?

Select one:

a. $1706

b. $8794

c. $4311

d. $2630

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