Special Order Bid Calculations

Not what you're looking for? Search our solutions OR ask your own Custom question.

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

The following applies to all questions listed:

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

© BrainMass Inc. brainmass.com December 24, 2021, 5:11 pm ad1c9bdddf
https://brainmass.com/business/management-accounting/special-order-bid-calculations-34261

Solution Preview

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

Part 2
Total product costs = ...

Solution Summary

This solution provides cost and bid price calculations for a bid.

$2.49