Question
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 | $ | 360,000 | |
| Direct labor | 150,000 | ||
| Allocated variable overhead | 90,000 | ||
| 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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Accounting Theory Contemporary Accounting Issues
Authors: Thomas G. Evans
1st Edition
0324107846, 9780324107845
