Company has an opportunity to submit a bid

Assignment Help Financial Accounting
Reference no: EM13925039

Accepting Business at a Special Price

Power Serve Company expects to operate at 90% of productive capacity during May. The total manufacturing costs for May for the production of 31,500 batteries are budgeted as follows:

Direct materials $321,300
Direct labor 118,100
Variable factory overhead 33,100
Fixed factory overhead 66,000
Total manufacturing costs $538,500

The company has an opportunity to submit a bid for 1,000 batteries to be delivered by May 31 to a government agency. If the contract is obtained, it is anticipated that the additional activity will not interfere with normal production during May 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? Round your answer to two decimal places.
$ per unit.

Reference no: EM13925039

Determine the gain or loss on the sale of the equipment

Equipment was acquired at the beginning of the year at a cost of $37,250. The equipment was depreciated using the double-declining-balance method based on an estimated useful

What is amortization of discount-effective interest method

On the first dy of its fiscal year, Pedro Dynamite Co. issued $11,000,000 of the five-year, 9% bonds, semiannually. The bonds were issued at an effective rate of 12%, and rece

Adverse effects of sweatshop labor practices

From the e-Activity, determine at least three (3) ways in which United States’ businesses can address the adverse effects of sweatshop labor practices. Provide one (1) specifi

Evaluate the unit product cost of each product

Evaluate the unit product cost of each product for the current period using the activity-based costing approach and Computation of cost of the products based on Activity Based

What is the annual operating cash flow

A company is considering investing in a piece of machinery which will cost $550,000. It will provide an additional $160,000 in sales each year and its annual operating expense

Prepare a cvp graph with units sold as the horizontal axis

Prepare a CVP graph with ‘‘Units Sold'' as the horizontal axis and ‘‘$ Profit'' as the vertical axis. Label the break-even point on the horizontal axis.

Total cost required for completing project on normal time

Development of Version 2.0 of a particular accounting software product is being considered by Jose? Noguera's technology firm in Baton Rouge. Based on the given information re

Uses weighted-average process-costing system

Willingham uses a weighted-average process-costing system for its single product, which consists of Material X and Material Y. X and Y are introduced to the product as follows


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd