Reference no: EM132515590

Doggle, Inc. has two categories of overhead: maintenance and inspection. Costs expected for these categories for the coming year are as follows:

Maintenance                              $400,000

Inspection                                   200,000

The following data have been assembled for use in developing a bid for a proposed job:

Direct materials                       $3,000

Direct labor                            $8,000

Machine-hours                            200

Number of inspections                     2

Direct labor-hours                          400

• The practical capacity of machine-hours for all jobs during the year is 12,500, and for inspections is 400. These are the cost drivers for maintenance and inspection costs, respectively.

Question 1: Using the appropriate cost drivers, the total cost of the potential job is