Solution-Calculate the amount of the final price adjustment

Calculate the amount of the final price adjustment

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Reference no: EM131587737

Question: Calculate the amount of the final price adjustment because of defective pricing based on the following:

Contractor unintentionally overpriced their material costs by $75,000 and under-priced their direct manufacturing labor costs by $50,000. Overhead rates used to price the original contract are given below:

- Material OH 15%

- Engineering OH 75%

- Manufacturing OH 124%

- Lawn Maintenance OH 1.5%

- G&A 24%

Reference no: EM131587737

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Calculate the amount of the final price adjustment

Reference no: EM131587737

Reference no: EM131587737

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