Superior Company is involved in a competitive bidding situation. The following costs are anticipated for a project to be bid with the City of Southlake: $$\begin{array} { l r }
\text { Direct material } & \$ 340,000 \
\text { Direct labor } & 610,000 \
\text { Allocated variable overhead } & 420,000 \
\text { Allocated fixed cost } & 110,000
\end{array}$$ Which of the following cost figures should be used in setting a minimum bid price if Superior has excess capacity?

Question

Superior Company is involved in a competitive bidding situation. The following costs are anticipated for a project to be bid with the City of Southlake: $$\begin{array} { l r } 
\text { Direct material } & \$ 340,000 \
\text { Direct labor } & 610,000 \
\text { Allocated variable overhead } & 420,000 \
\text { Allocated fixed cost } & 110,000
\end{array}$$ Which of the following cost figures should be used in setting a minimum bid price if Superior has excess capacity?

Quizplus · Accepted Answer

The Answer of Superior Company is involved in a competitive bidding situation. The following costs are anticipated for a project to be bid with the City of Southlake: $$\begin{array} { l r } 
\text { Direct material } & \$ 340,000 \
\text { Direct labor } & 610,000 \
\text { Allocated variable overhead } & 420,000 \
\text { Allocated fixed cost } & 110,000
\end{array}$$ Which of the following cost figures should be used in setting a minimum bid price if Superior has excess capacity?

Superior Company Is Involved in a Competitive Bidding Situation Which of the Following Cost Figures Should Be Used in Following