Parker Industries applies manufacturing overhead costs to products at a budgeted indirect-cost rate of $60 per direct manufacturing labor hour. A client has requested a bid on a special order for a customized bracelet. Estimates for this order include: Direct materials of $52,000, 450 direct manufacturing labor hours at $18 per hour, and a 40% markup rate on total manufacturing costs. What is the bid price for this special order?

Parker Industries applies manufacturing overhead costs to products at a budgeted indirect-cost rate of $60 per direct manufacturing labor hour. A client has requested a bid on a special order for a customized bracelet. Estimates for this order include: Direct materials of $52,000, 450 direct manufacturing labor hours at $18 per hour, and a 40% markup rate on total manufacturing costs. What is the bid price for this special order?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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