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Ignore any calculations from prior questions. Information pertaining to Radakovich Corporation's estimated manufacturing overhead for 2022 is given below. Radakovich uses an activity-based costing
Ignore any calculations from prior questions. Information pertaining to Radakovich Corporation's estimated manufacturing overhead for 2022 is given below. Radakovich uses an activity-based costing (ABC) system to assign manufacturing overhead to products. Among its products is G12B, that the company only manufactures for special orders. BobCo Inc. has requested a bid on 1,000 units of G12B. Radakovich's production managers estimate the order to require 10,000 parts and 600 inspection-hours. This product's direct materials are estimated to cost $40.00 per unit and direct labor is estimated at $60.00 per unit. Activity Assembly Activity Rate $25.00 Cost Driver Material Handling $1.00 number of machine hours number of parts Inspection $50.00 number of inspection-hours Activity Rates are quoted per unit of cost cost driver activity. Radakovich also estimates that marketing and administrative costs on the BobCo order will equal $25.00 per unit. However, there is considerable uncertainty about the number of machine hours that will be used since a change in the quality of materials available could effect machine time. If the bid price is $175 per unit, what is the number of machine hours that (for all units in total) that would result in the special order just breaking even? (Round to the nearest whole unit.)
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