Question
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 200 machine-hours, 10,000 parts, and 500 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 $30.00 Cost Driver number of machine hours Material Handling $2.00 number of parts Inspection $81 number of inspection-hours Activity Rates are quoted per unit of cost driver activity. What should Radakovich bid for the special order of G12B (i.e., the total bid for 1,000 units) if its normal practice is to mark up the manufacturing cost of special orders by twenty-five percent to cover profit plus marketing and administrative costs. (Round to the nearest $1.00)
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