Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribedimage text in transcribed

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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Horngrens Accounting

Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura

10th edition

133117413, 978-0133129519, 133129519, 978-0133129557, 133129551, 978-0133117561, 133117561, 978-0133117417

More Books

Students also viewed these Accounting questions

Question

What is the difference between adsorption and absorption?

Answered: 1 week ago

Question

Find n, SX, and M using scores in a frequency distribution table.

Answered: 1 week ago