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Please explain each step and show all working as I understand the theory, however keep getting the wrong answer The Niddrie Manufacturing Company has four
Please explain each step and show all working as I understand the theory, however keep getting the wrong answer
The Niddrie Manufacturing Company has four categories of manufacturing overhead. The four categories, their cost drivers and expected overhead costs for the next vear are as follows: Types of manufacturing overhead cost Maintenance Expected annual Cost driver cost Materials handling Setups Inspection Machine hours Number of material move Number of setups Number of inspections 255 000 125 000 30 000 105 000 Currently, the manufacturing overhead is applied using a predetermined manufacturing overhead rate based on budgeted direct labour hours. Budgeted for the next year are 50 000 direct labour hours Niddrie Manufacturing Company has been asked to submit a bid for a proposed job. The manufacturing manager believes that gaining this job would result in additional new business in the future. Usually bids are based on full manufacturing cost plus 10% mark-up Estimated for the proposed job are the following Direct materials $60 000 Direct labour (16 000 hours) 48 000 Number of material moves Number of inspections Number of setups Number of machine hourS 100 120 24 4000Step by Step Solution
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