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Calculate the amount of the final price adjustment because of defective pricing based on the following: Contractor unintentionally overpriced their material costs by $75,000 and
Calculate the amount of the final price adjustment because of defective pricing based on the following:
Contractor unintentionally overpriced their material costs by $75,000 and under-priced their direct manufacturing labor costs by $50,000. Overhead rates used to price the original contract are given below:
Material OH15%
Engineering OH75%
Manufacturing OH124%
Lawn Maintenance OH 1.5%
G&A24%
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