Accepting Business at a Special Price Forever Ready Company expects to operate at 90% productive capacity during July. The total manufacturing costs for July for the production of 37,800 batteries are budgeted as follows: Direct materials $413,800 152,100 Direct labor Variable factory overhead 42,680 Fixed factory overhead 85,000 Total manufacturing costs $693,580 The company has an opportunity to submit a bid for 2,000 batteries to be delivered by July 31 to a government agency. If the contract is obtained, it is anticipated that the additional activity will not interfere with normal production during July or increase the selling or administrative expenses. What is the unit cost below which Forever Ready Company should not go in bidding on the government contract? Round your answer to two decimal places. per unit

Accepting Business at a Special Price Forever Ready Company expects to operate at 90% productive capacity during July. The total manufacturing costs for July for the production of 37,800 batteries are budgeted as follows: Direct materials $413,800 152,100 Direct labor Variable factory overhead 42,680 Fixed factory overhead 85,000 Total manufacturing costs $693,580 The company has an opportunity to submit a bid for 2,000 batteries to be delivered by July 31 to a government agency. If the contract is obtained, it is anticipated that the additional activity will not interfere with normal production during July or increase the selling or administrative expenses. What is the unit cost below which Forever Ready Company should not go in bidding on the government contract? Round your answer to two decimal places. per unit

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Description: Accepting Business at a Special PriceForeverReady Company expects to operate at 90% of productive capacity during July. The total manufacturing costs for July for the production of 37,800 batteries are budgeted as follows:Direct materials$413,800152

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 14E: Accepting business at a special price Box Elder Power Company expects to operate at 85% of...

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