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# Special Order Bid Calculations

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Manufacturing support costs for products is predetermined at a rate of \$60 per direct labor hour. An outlet has a bid in on a special order toy product. Estimates for the order include: Direct materials \$40,000; direct labor 500 direct labor hours at \$20 per hour; and a markup of 20%

1) Support cost estimates for this special order total - \$10,000, \$30,000, \$36,000, or none of these

2) Estimated total product costs for this special order total - \$50,000, \$80,000, \$96,000, or none of these

3) The bid price for this special order should be - \$50,000, \$60,000, \$80,000, or none of these

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Part 1
Support cost estimates = \$60/direct labor hour * 500 direct labor hours = \$30,000.