2. Accounting
3. merry co has two major categories of manufacturing overhead material...

# Question: merry co has two major categories of manufacturing overhead material...

###### Question details

Merry Co. has two major categories of manufacturing overhead: material handling and quality control. The costs expected for these categories for the coming year are as follows:

 Material handling $120,000 Quality inspection 200,000 The plant currently applies overhead based on direct labor hours. The estimated direct labor hours are 80,000 per year. The plant manager is asked to submit a bid and assembles the following data on a proposed job:  Direct materials$4,000 Direct labor (2,000 hours) 6,000

What is the estimated product cost on the proposed job?

A) $8,000 B)$10,000

C) $18,000 D)$14,000