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Gypsum Park Recreation is exploring a competitive bidding situation. The firm, which currently has no excess capacity, estimates the following costs for a project to
Gypsum Park Recreation is exploring a competitive bidding situation. The firm, which currently has no excess capacity, estimates the following costs for a project to be performed for the Talent School District:
| Direct material | $ 380,000 |
|---|---|
| Direct labor | 130,000 |
| Allocated variable overhead | 93,000 |
| Allocated fixed cost | 44,000 |
Which of the following cost figures would be used in determining a minimum price if Gypsum Park decides to bid on the Talent project?
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