Power Serve Company expects to operate at 85% of productive capacity during April. The total manufacturing costs
Question:
Direct materials $285,000
Direct labor 104,000
Variable factory overhead 31,000
Fixed factory overhead 58,000
Total manufacturing costs $478,000
The company has an opportunity to submit a bid for 2,000 batteries to be delivered by April 30 to a government agency. If the contract is obtained, it is anticipated that the additional activity will not interfere with normal production during April or increase the selling or administrative expenses. What is the unit cost below which Power Serve Company should not go in bidding on the government contract?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
Question Posted: