Abbreviated Example of a Cost Price Proopsal luketroy cost price

Abbreviated Example of a Cost Price Proopsal luketroy cost price

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Exhibit A Abbreviated Example of a Cost/Price Proposal Luke ‘s Store Front Cost/Price Proposal HYPOTHETICAL DEVICE Materials costs1 $ 400,000 Materials handling overhead 3 Materials handling overhead rate of 2% applied to material costs $ 8,000 Direct labor costs2 $ 950,000 Production overhead3 Production overhead rate of 150% applied to direct labor costs $1,000,000 Total production costs $ 2,358,000 General and administrative (G&A) expenses3 G&A rate of 10% applied to production costs $ 235,800 Total costs $ 2,593,800 Profit (or Fee) (6.90994% of Total costs)
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Unformatted text preview: $ 179,230 Selling price $ 2,773,030 ___________________________________________________________________________________________________________________________________________________________ 1 Based on a priced out bill of materials. 2 Based on a work breakdown structure (WBS) and estimated labor rates. 3 Based on indirect cost allocation plan derived from the enterprises financial statements and cost accounting system produced in conformity with generally accepted accounting procedures....
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