Lancelot Manufacturing is a small textile manufacturer using machine-hours as the single indirect-cost rate to allocate manufacturing overhead costs to the various jobs contracted during the year. The following estimates are provided for the coming year for the company and for the Case High School band jacket job.

What is the bid price for the Case High School job if the company uses a 40% markup of total manufacturing costs?

Question

Lancelot Manufacturing is a small textile manufacturer using machine-hours as the single indirect-cost rate to allocate manufacturing overhead costs to the various jobs contracted during the year. The following estimates are provided for the coming year for the company and for the Case High School band jacket job.

What is the bid price for the Case High School job if the company uses a 40% markup of total manufacturing costs?

Quizplus · Accepted Answer

(DM $2,000 + DML $400 + MOH $405) × (1 + 40/100) = $3,927

Lancelot Manufacturing Is a Small Textile Manufacturer Using Machine-Hours as the Single