Question
Power Pack Company expects to operate at 90% of productive capacity during July. The total manufacturing costs for July for the production of 38,700 batteries
Power Pack Company expects to operate at 90% of productive capacity during July. The total manufacturing costs for July for the production of 38,700 batteries are budgeted as follows:
Direct materials | $605,300 |
Direct labor | 222,500 |
Variable factory overhead | 62,300 |
Fixed factory overhead | 125,000 |
Total manufacturing costs | $1,015,100 |
The company has an opportunity to submit a bid for 2,000 batteries to be delivered by July 31 to a government agency. If the contract is obtained, it is anticipated that the additional activity will not interfere with normal production during July or increase the selling or administrative expenses.
What is the unit cost below which Power Pack Company should not go in bidding on the government contract? Round your answer to two decimal places. $fill in the blank 1 per unit
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started