Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello

تمرين 36

Spear Custom Furniture uses an activity-based cost accounting system to apply overhead to pro­duction. The company maintains four overhead cost pools. The four cost pools, and their budgeted amounts for the upcoming period, are as follows:
Four cost drivers are used by Spear to allocate its overhead cost pools to production. The four cost drivers, and their budgeted total levels of activity for the upcoming period, are shown below:
The company has been asked by Cosmopolitan University to submit a bid for tables to be used in a new computer lab. The plant manager feels that obtaining this job would result in new business in future years. Estimates for the Cosmopolitan University project are as follows:
a. Estimate the total cost of manufacturing the tables for Cosmopolitan University.
b. Determine the company's bid price if bids are based upon the total estimated manufacturing cost of a particular project, plus 75 percent.