Unformatted text preview: Usually bids are based upon full manufacturing costs plus 20 percent. Estimates for the proposed job are listed below: Direct materials $6,000 Direct labor (1,000 Hours @$10/hr 10,000 # of material moves 12 # of inspections 10 # of setups 2 # of machine hours 500 In the past, full manufacturing cost has been computed by allocating overhead using a single rate using DLH. The plant manager has heard of a new way of applying overhead using ABC method. REQUIRED: 1. Determine the bid price for the proposed job using a single rate based upon direct labor hours. 2. Determine the bid price for the proposed job using ABC method...
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- Spring '09
- Managerial Accounting, American Broadcasting Company