Question: answer Inorder to bid more effectively on potential contract work, Barbara, the owner of Bridgeport, uses normal costing within her company's job costing system. She

answer

answer Inorder to bid more effectively on
Inorder to bid more effectively on potential contract work, Barbara, the owner of Bridgeport, uses normal costing within her company's job costing system. She needs to provide potential customers with an estimate of the final cost of the project before they'll commit to working with Bridgeport. On her most recent job, Barbara bid $46,000 to custom-design a kitchen/living room space for her client (including all DM, DL, and MOH costs plus a mark-up of $22,440). Her total cost estimate includes MOH costs of $10,000, using a budgeted MOH rate of $0.50/DL dollar. lf the scope of the project should change, for example, if the client later decides to upgrade the appliances, the client will have to absorb the remaining cost. (a) (b) For Barbara to earn any gross margin on this project, her total product costs must be less than what amount? With a bid of $46,000, her total product costs would need to be less than $ in order to generate any gross m

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Business Writing Questions!