More Connect Wesco Incorporated's only product is a combination fertilizer/weedkiller called Grown Weed GrowNWeed is sold nationwide to retai nurseries and garden stores Zwinger Nursery plans to sell a similar fertilizerweedkiller compound through its regional nursery chain under its own private label Zwinger does not have manufacturing facilities of its own, so it has asked Wesco (and several other companies to submit a bid for manufacturing and delivering a 30.000-pound order of the private brand compound to Zwinger. While the chemical composition of the Zwinger compound differs from that of Grown Weed, the manufacturing processes are very similar The Zwinger compound would be produced in 1.000 pound lots. Each lot would require 33 direct labor hours and the following chemicals Chemicals Quantity in Pounds AG-5 340 KL-2 290 CW-7 130 F-6 240 The first three chemicals (AG-5, KL-2and CW.7) are all used in the production of Grown Weed DF-6 was used in another compound that Wesco discontinued several months ago. The supply of DF-6 that Wesco had on hand when the other compound was discontinued was not discarded. Wesco could sell its supply of DF-6 at the prevailing market price less 50.11 per pound selling and handling expenses. Wesco also has on hand a chemical called BH-3, which was manufactured for use in another product that is no longer produced BH-3, which cannot be used in GrowNWeed, can be substituted for AG-5 on a one-for-one basis without affecting the quality of the Zwinger compound. The BH-3 in inventory has a salvage value of $590 Inventory and cost data for the chemicals that can be used to produce the Zwinger compound are shown below Wesco who has on hand a chemical called BH 3, which was manufactured for use in another product that is no longer produced. B 2. which cannot be used in Grown Weed, can be substituted for AG-5 on a one for one basis without affecting the quality of the Zwinger compound The BH 3 in inventory has a salvage value of $590 Inventory and cont data for the chemicals that can be used to produce the Zwinger compound are shown below. Actual Price Der Pound Market Maw Pounds When Price per Material Inventory Purchased Pound NG-5 21.00 $0.23 $8.39 -2 5.500 50.51 $8.56 DW- 8,500 $1.25 04-6 11.45 5.900 50.41 $0.61 33 5.30 30.59 Salvagel The current direct labor wage rate is 18 per hour. The predetermined overhead rate is based on direct lobor-hours (OH)The predetermined overseed rate for the current year, based on a two shift capacity with no overtime, is as follows: Varile manufacturing overhead Fixed tacturing over Com tred predetermines vertes rate 54.40 per 8.00 per OLM 512.00 per LN Wesco's production manager reports that the present equipment and facilities are adequate to manufacture the Zwinger compound. Therefore, the order would have no effect on totale manufacturing overhead costs. However Wesco is within MO hours of its two whi City this mor. Any additional hours beyond the 140 hours must be done in overtime. If need be the Zwinger compound could be produced on regulate by shifting a portion of GrowNeed production to overtime. Wesco's direct labor wage rate for overtime is 527 per hout There is no wowce for any overtime premium in the predetermined overhead rate Required: 1 Wesco has decided to submit a bid for the 30,000 pound order of Zwinger's new compound. The order must be delivered by the end of the current month winger has indicated that one time order that is not be repeated. Calculate the lowest price that Wesce could bid for the order and still eactly cover its incremental manufacturing costs 2. Refer to the original data. Assume that Zwinger Nursery plans to place regular orders for 30,000 pound lots of the new compound Wesco expects the demand for Grown Weed to remain strong. Therefore, the recurring orders from Zwinger would put Wesco over its two shift capacity. However, production could be scheduled so that 60% of each Zwinger order could be completed during regular hours. As another option, some Grown Weed production could be shifted temporarily to overtime so that the Zwinger orders could be produced on regular time. Current market prices are the best available estimates of future market prices. Wesco's standard markup policy for new products is 40% of the full manufacturing cost, including fored manufacturing overhead Calculate the price that Wesco, Inc. would quote Zwinger Nursery for each 30,000 pound lot of the new compound, assuming that it is to be treated as a new product and this pricing policy is followed Complete this question by entering your answers in the tabs below. Required: Required 2 Wesco has decided to submit a bid for the 30,000 pound order of Zwinger's new compound. The order must be delivered by the end of the current month Zwinger has indicated that this is a one-time order that will not be repeated. Calculate the lowest price that Wesco could bid for the order and still exactly cover its incremental mandacturing costs. Round al Intermediate calculations and final answer to 2 decimal places.) Le ce pound bli Required 2 > M Prev 1 at 5 Next > More Connect Wesco Incorporated's only product is a combination fertilizer/weedkiller called Grown Weed GrowNWeed is sold nationwide to retai nurseries and garden stores Zwinger Nursery plans to sell a similar fertilizerweedkiller compound through its regional nursery chain under its own private label Zwinger does not have manufacturing facilities of its own, so it has asked Wesco (and several other companies to submit a bid for manufacturing and delivering a 30.000-pound order of the private brand compound to Zwinger. While the chemical composition of the Zwinger compound differs from that of Grown Weed, the manufacturing processes are very similar The Zwinger compound would be produced in 1.000 pound lots. Each lot would require 33 direct labor hours and the following chemicals Chemicals Quantity in Pounds AG-5 340 KL-2 290 CW-7 130 F-6 240 The first three chemicals (AG-5, KL-2and CW.7) are all used in the production of Grown Weed DF-6 was used in another compound that Wesco discontinued several months ago. The supply of DF-6 that Wesco had on hand when the other compound was discontinued was not discarded. Wesco could sell its supply of DF-6 at the prevailing market price less 50.11 per pound selling and handling expenses. Wesco also has on hand a chemical called BH-3, which was manufactured for use in another product that is no longer produced BH-3, which cannot be used in GrowNWeed, can be substituted for AG-5 on a one-for-one basis without affecting the quality of the Zwinger compound. The BH-3 in inventory has a salvage value of $590 Inventory and cost data for the chemicals that can be used to produce the Zwinger compound are shown below Wesco who has on hand a chemical called BH 3, which was manufactured for use in another product that is no longer produced. B 2. which cannot be used in Grown Weed, can be substituted for AG-5 on a one for one basis without affecting the quality of the Zwinger compound The BH 3 in inventory has a salvage value of $590 Inventory and cont data for the chemicals that can be used to produce the Zwinger compound are shown below. Actual Price Der Pound Market Maw Pounds When Price per Material Inventory Purchased Pound NG-5 21.00 $0.23 $8.39 -2 5.500 50.51 $8.56 DW- 8,500 $1.25 04-6 11.45 5.900 50.41 $0.61 33 5.30 30.59 Salvagel The current direct labor wage rate is 18 per hour. The predetermined overhead rate is based on direct lobor-hours (OH)The predetermined overseed rate for the current year, based on a two shift capacity with no overtime, is as follows: Varile manufacturing overhead Fixed tacturing over Com tred predetermines vertes rate 54.40 per 8.00 per OLM 512.00 per LN Wesco's production manager reports that the present equipment and facilities are adequate to manufacture the Zwinger compound. Therefore, the order would have no effect on totale manufacturing overhead costs. However Wesco is within MO hours of its two whi City this mor. Any additional hours beyond the 140 hours must be done in overtime. If need be the Zwinger compound could be produced on regulate by shifting a portion of GrowNeed production to overtime. Wesco's direct labor wage rate for overtime is 527 per hout There is no wowce for any overtime premium in the predetermined overhead rate Required: 1 Wesco has decided to submit a bid for the 30,000 pound order of Zwinger's new compound. The order must be delivered by the end of the current month winger has indicated that one time order that is not be repeated. Calculate the lowest price that Wesce could bid for the order and still eactly cover its incremental manufacturing costs 2. Refer to the original data. Assume that Zwinger Nursery plans to place regular orders for 30,000 pound lots of the new compound Wesco expects the demand for Grown Weed to remain strong. Therefore, the recurring orders from Zwinger would put Wesco over its two shift capacity. However, production could be scheduled so that 60% of each Zwinger order could be completed during regular hours. As another option, some Grown Weed production could be shifted temporarily to overtime so that the Zwinger orders could be produced on regular time. Current market prices are the best available estimates of future market prices. Wesco's standard markup policy for new products is 40% of the full manufacturing cost, including fored manufacturing overhead Calculate the price that Wesco, Inc. would quote Zwinger Nursery for each 30,000 pound lot of the new compound, assuming that it is to be treated as a new product and this pricing policy is followed Complete this question by entering your answers in the tabs below. Required: Required 2 Wesco has decided to submit a bid for the 30,000 pound order of Zwinger's new compound. The order must be delivered by the end of the current month Zwinger has indicated that this is a one-time order that will not be repeated. Calculate the lowest price that Wesco could bid for the order and still exactly cover its incremental mandacturing costs. Round al Intermediate calculations and final answer to 2 decimal places.) Le ce pound bli Required 2 > M Prev 1 at 5 Next >