Ignore any calculations from prior questions. Information pertaining to Radakovich Corporation's estimated manufacturing overhead for 2022 is given below. Radakovich uses an activity-based costing (ABC) system to assign manufacturing overhead to products. Among its products is G12B, that the company only manufactures for special orders. BobCo Inc. has requested a bid on 1,000 units of G12B. Radakovich's production managers estimate the order to require 200 machine-hours, 10,000 parts, and 500 inspection-hours. This product's direct materials are estimated to cost $40.00 per unit and direct labor is estimated at $60.00 per unit. Activity Activity Rate Cost Driver Assembly $30.00 number of machine hours Material Handling $2.00 number of parts Inspection $81 number of inspection-hours Activity Rates are quoted per unit of cost driver activity. What should Radakovich bid for the special order of G12B (i.e., the total bid for 1, 000 units) if its normal practice is to mark up the manufacturing cost of special orders by twenty-five percent to cover profit plus marketing and administrative costs. (Round to the nearest $1.00)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Ignore any calculations from prior questions. Information pertaining to
Radakovich Corporation's estimated manufacturing overhead for 2022 is given
below. Radakovich uses an activity-based costing (ABC) system to assign
manufacturing overhead to products. Among its products is G12B, that the company
only manufactures for special orders. Bobco Inc. has requested a bid on 1,000
units of G12B. Radakovich's production managers estimate the order to require
200 machine-hours, 10,000 parts, and 500 inspection-hours. This product's direct
materials are estimated to cost $40.00 per unit and direct labor is estimated at
$60.00 per unit.
Activity
Activity Rate
Cost Driver
Assembly
$30.00
number of machine hours
Material Handling
$2.00
number of parts
Inspection
$81
number of inspection-hours
Activity Rates are quoted per unit of cost driver activity.
What should Radakovich bid for the special order of G12B (i.e., the total
bid for 1,000 units) if its normal practice is to mark up the manufacturing cost
of special orders by twenty-five percent to cover profit plus marketing and
administrative costs. (Round to the nearest $1.00)
Transcribed Image Text:Ignore any calculations from prior questions. Information pertaining to Radakovich Corporation's estimated manufacturing overhead for 2022 is given below. Radakovich uses an activity-based costing (ABC) system to assign manufacturing overhead to products. Among its products is G12B, that the company only manufactures for special orders. Bobco Inc. has requested a bid on 1,000 units of G12B. Radakovich's production managers estimate the order to require 200 machine-hours, 10,000 parts, and 500 inspection-hours. This product's direct materials are estimated to cost $40.00 per unit and direct labor is estimated at $60.00 per unit. Activity Activity Rate Cost Driver Assembly $30.00 number of machine hours Material Handling $2.00 number of parts Inspection $81 number of inspection-hours Activity Rates are quoted per unit of cost driver activity. What should Radakovich bid for the special order of G12B (i.e., the total bid for 1,000 units) if its normal practice is to mark up the manufacturing cost of special orders by twenty-five percent to cover profit plus marketing and administrative costs. (Round to the nearest $1.00)
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