m/takeAssignment/takeAssignmentMain.do?invoker%3&takeAssignmentSessionLocator-assignment-take&inprogress-Dfals eBook Calculator Print Item Accepting Business at a Special Price Forever Ready Company expects to operate at 82% of productive capacity during May. The total manufacturing costs for May for the production of 36,080 batteries are budgeted as follows: Direct materials $372,900 Direct labor 137,100 Variable factory overhead 38,416 Fixed factory overhead 77,000 $625,416 Total manufacturing costs The company has an opportunity to submit a bid for 3,000 batteries to be delivered by May 31 to a government agency. If the contract is obtained, it is anticipated that the additional activity will not interfere with normal production during May 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. %$4 per unit 1:54 PM 12/6/2019 Chp ins prt sc end home f12 delete f1 ho f9 f8 & 7 wnu lock + backspace 9. 8.
m/takeAssignment/takeAssignmentMain.do?invoker%3&takeAssignmentSessionLocator-assignment-take&inprogress-Dfals eBook Calculator Print Item Accepting Business at a Special Price Forever Ready Company expects to operate at 82% of productive capacity during May. The total manufacturing costs for May for the production of 36,080 batteries are budgeted as follows: Direct materials $372,900 Direct labor 137,100 Variable factory overhead 38,416 Fixed factory overhead 77,000 $625,416 Total manufacturing costs The company has an opportunity to submit a bid for 3,000 batteries to be delivered by May 31 to a government agency. If the contract is obtained, it is anticipated that the additional activity will not interfere with normal production during May 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. %$4 per unit 1:54 PM 12/6/2019 Chp ins prt sc end home f12 delete f1 ho f9 f8 & 7 wnu lock + backspace 9. 8.
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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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.
Transcribed Image Text:m/takeAssignment/takeAssignmentMain.do?invoker%3&takeAssignmentSessionLocator-assignment-take&inprogress-Dfals
eBook
Calculator
Print Item
Accepting Business at a Special Price
Forever Ready Company expects to operate at 82% of productive capacity during May. The total manufacturing costs for May
for the production of 36,080 batteries are budgeted as follows:
Direct materials
$372,900
Direct labor
137,100
Variable factory overhead
38,416
Fixed factory overhead
77,000
$625,416
Total manufacturing costs
The company has an opportunity to submit a bid for 3,000 batteries to be delivered by May 31 to a government agency. If the
contract is obtained, it is anticipated that the additional activity will not interfere with normal production during May 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.
%$4
per unit
1:54 PM
12/6/2019
Chp
ins
prt sc
end
home
f12
delete
f1
ho
f9
f8
&
7
wnu
lock
+ backspace
9.
8.
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