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Help with calculating if we should accept a contract to manufacture cabinets for a project Direct labour is 2.6 hours per unit direct labour cost
Help with calculating if we should accept a contract to manufacture cabinets for a project
Direct labour is 2.6 hours per unit
direct labour cost $38.50 per hour
direct materials are $128 per unit
variable OH is $38 per unit
installation is 0.7 hours per unit
installation rate is $35.00 per hour
fixed OH is $42 per unit
delivery is $10 per unit
sell price is $340 per unit
I am also not sure if installation and delivery are fixed or variable costs?
Thanks
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