Webster Recycling recycles newsprint, cardboard, and so forth, into recycled packaging materials. For the coming year, Webster
Question:
After the new fiscal year began, Lundy Paper Supply asked Webster Recycling to bid for a job that will take 2,000 machine hours and 1,550 direct labor hours to produce. The direct labor cost for this job will be $12 per hour, and the direct materials will total $25,800.
Requirements
1. Compute the total job cost and bid price if Webster Recycling decided to use direct labor hours as the manufacturing overhead allocation base for the year.
2. Compute the total job cost and bid price if Webster Recycling decided to use machine hours as the manufacturing overhead allocation base for the year.
3. In addition to the bid from Webster Recycling, Lundy Paper Supply received a bid of $124,500 for this job from Kristal Recycling. What are the ramifications for Webster Recycling?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: