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