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Ignore any calculations from prior questions. Information pertaining to Radakovich Corporations estimated manufacturing overhead for 2022 is given below. Radakovich uses an activity-based costing (ABC)

Ignore any calculations from prior questions. Information pertaining to Radakovich Corporations 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. Radakovichs production managers estimate the order to require 200 machine-hours, 4,000 parts, and 300 inspection-hours. This product's direct materials are estimated to cost $50.00 per unit and direct labor is estimated at $60.00 per unit.

Activity Activity Rate Cost Driver
Assembly $30.00 number of machine hours
Machine Handling $2.00 number of parts
Inspection $75.00 number of inspection hours

Activity Rates are quoted per unit of cost driver activity.

1.)What should Radakovich bid for the special order of G12B (all 1,000 units) if its normal practice is to mark up the manufacturing cost of special orders by 70% to cover profit plus marketing and administrative costs. (Round to the nearest $1.00)

2.)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 $177.4 per unit, what is the maximum number of machine hours that could be used (for all units) before the special order is unprofitable? (Round to the nearest whole unit.)

3.)A Radakovich engineer has suggested that a new software program that costs $13700 could save 15% of the direct labor costs and 100 inspection hours on the BobCo order. What is the total net manufacturing cost savings if the software is purchased and used on this order? (Round to the nearest $1.00)

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