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Cu 1 (5 dim): AD Ltd. produces tables for school. In July the overheads costs of AD were as follows: O Maintenance cost: $60,000
Cu 1 (5 dim): AD Ltd. produces tables for school. In July the overheads costs of AD were as follows: O Maintenance cost: $60,000 (allocate based on machine hours 4,000 hours) O Material handling cost: $10,000 (allocated based on 1,000 material moves) O Setup cost: $30,000 (allocated based on number of setup, 600) O Quality cost: $9,000 (allocated based on the inspection, 50) In July AD Ltd. prepared a bid for a local school. The information of the bid is as follows: Material cost: $7,000; Labour cost: $12,000 Machine hours: 200; material moves: 60; setup: 30; inspection: 20 Required: (i) what is the cost of the bid? (ii) If (profit) markup is 75%, what is the bid price? (iii) when AC may increase the markup to earn more profit?
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