Please help solve question 5 (Ch. 6 HW). Will rate thumbs up if correct. Thank you.

07 1 port Wesco Incorporated's only product is a combination fertilizer/weedkiller called GrownWeed Grown Weed is sold nationwide to retail nurseries and garden stores Zwinger Nursery plans to sell a similar fertilizer/weedkiller 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 manutoctoning 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 GrownWeed, the manufacturing processes are very similar The Zwinger compound would be produced in 1.000-pound lots. Each lot would require 31 direct labor-hours and the following chemicals 100 Chemicals AG-5 KL-2 CW of 6 Quantity in Pounds 370 270 180 180 References The first three chemicals (AG 5, KL. 2, and CW.7) are all used in the production of GrownWeed 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 ot the prevailing market price less $0.08 per pound selling and handling expenses Wesco also has on band 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 Grow 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 hos a salvage value of $540 Inventory and cost data for the chemicals that can be used to produce the Zwinger compound are shown below Haw Material Pounds in Inventory 10,000 4,300 3,400 Actual Price per Pound when Purchased 50.74 $ 0.00 $ 1.35 $ 0.41 Current Market Price per Pound 50.84 5 0.45 5 1.55 5 0.50 KL 2 CHY 04 07 1 Inventory and cost data for the chemicals that can be used to produce the Zwinger compound are shown below Actual Price Current per Pound Market Pounds in When Price per Material Inventory Purchased Pound AGS 18,000 $ 0.74 $ 0.84 KL-2 4,300 $ 0.00 $ 0.45 CW.7 8,400 $1.35 $ 1.55 DF 4,100 $ 0.41 5 0.50 5,500 $0.73 (Salvage) DOOR The current direct labor wage rate is $14 per hour. The predetermined overhead rate is based on direct labor hours (DLH). The predetermined overhead rote for the current year, based on a two-shift capacity with no overtime is as follows: Variable manufacturing overhead Fixed manufacturing overhead Combined predetermined overhead rate $ 5.40 7.30 $12.70 per DUR per DH per DUH Referencen 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 total fixed manufacturing overhead costs. However, Wesco is within 130 hours of its two shift capacity this month. Any additional hours beyond the 130 hours must be done in overtime. If need be, the Zwinger compound could be produced on regular time by shifting a portion of GrowNWeed production to overtime Wesco's direct labor wage rate for overtime is $21 per hour. There is no allowance 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 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 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 GrownWeed 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 GrownWeed production could be shifted tomporarily 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 07 Required: 1 Wesco has decided to submit a bid for the 30.000 pound ordet 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 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 GrownWeed 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 GrownWeed 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. Wescos standard markup policy for new products is 40% of the full manufacturing cost, including fixed 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 A Complete this question by entering your answers in the tabs below. Record 1 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 manufacturing costs. (Round all mediate calculations and final answer to 2 decimal places) Show less Le pound tod) Required 2 > 5 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. 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 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 GrownWeed 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 GrownWeed production could be shifted temporarily to overtime so that the Zwinger orders could be produced on regulor 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 fixed 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 1 Required 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 GrownWeed 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 Wesco standard markup policy for new products is 40% of the full manufacturing cost, including fixed 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. (Round your intermediate DUHs to the nearest whole hour Round all other intermediate calculations and final answers to 2 decimal places.) Show less Seng price 30.000 pound bid)