Answer the following questions using the information below:
Wagga Wagga Textiles 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 Tumut Brass Band band jacket job.
$$\begin{array} { l c c }
\text { Company } & \text { Tumut Brass } & \text { Band Job } \
\text { Direct materials } & \$ 40000 & \$ 1000 \
\text { Direct labour } & \$ 10000 & \$ 200 \
\text { Manufacturing overhead costs } & & \$ 30000 \
\text { Machine-hours } & 100000 \mathrm { mh } & 900 \mathrm { mh }
\end{array}$$
-What is the bid price for the Tumut Brass Band job if the company uses a 40% markup of total manufacturing costs?

Question

Answer the following questions using the information below:
Wagga Wagga Textiles 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 Tumut Brass Band band jacket job.
 $$\begin{array} { l c c } 
\text { Company } & \text { Tumut Brass } & \text { Band Job } \
\text { Direct materials } & \$ 40000 & \$ 1000 \
\text { Direct labour } & \$ 10000 & \$ 200 \
\text { Manufacturing overhead costs } & & \$ 30000 \
\text { Machine-hours } & 100000 \mathrm { mh } & 900 \mathrm { mh }
\end{array}$$
-What is the bid price for the Tumut Brass Band job if the company uses a 40% markup of total manufacturing costs?

Quizplus · Accepted Answer

First, calculate the manufacturing overhead rate: $30,000 / 100,000 mh = $0.30 per mh. Then, for the Tumut Brass Band job: Direct materials ($1,000) + Direct labor ($200) + Manufacturing overhead ($0.30 * 900 mh = $270) = $1,470 total manufacturing costs. With a 40% markup: $1,470 * 1.40 = $2,058.

Answer the Following Questions Using the Information Below: Wagga Wagga

Answer the Following Questions Using the Information Below:
Wagga Wagga