Question
Harlen Company is involved in a competitive bidding situation. The following costs are anticipated for a project to be bid with the City of Crimson:
Harlen Company is involved in a competitive bidding situation. The following costs are anticipated for a project to be bid with the City of Crimson:
| Direct material | $ | 360,000 | |
| Direct labor | 520,000 | ||
| Allocated variable overhead | 360,000 | ||
| Allocated fixed cost | 110,000 | ||
Which of the following cost figures should be used in setting a minimum bid price if Harlen has excess capacity?
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Accounting What the Numbers Mean
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,
9th Edition
978-0-07-76261, 0-07-762611-7, 9780078025297, 978-0073527062
