Palomar Battery Company expects to operate at 75% of full capacity during April. The total manufacturing costs for April for the production of 60,000 batteries are budgeted as follows:
Direct materials $75,000
Direct labor 960,000
Variable factory overhead 111,000
Fixed factory overhead 288,000
Total manufacturing costs $1,434,000
The company has an opportunity to submit a bid for 17,500 batteries to be delivered by April 30 to a government agency. If the contract is obtained, it is anticipated that the additional activity will not interfere with normal production during April or increase the selling or administrative expenses.
1. What is the April budgeted cost per battery for the production of 60,000 batteries?â
2. What is the unit cost below which Palomar Battery Company should not go in bidding on the government contract?
Answers: 3
Another question on Business
Business, 22.06.2019 19:40
Banana computers has decided to procure processing chips required for its laptops from external suppliers instead of manufacturing them in their own facilities. how will this decision affect the firm? a. the firm will be protected against the principal-agent problem. b. the firm's administrative costs will be low because of necessary bureaucracy. c. the firm will have more flexibility in purchasing and comparing prices of goods and services. d. the firm will have high-powered incentives, such as hourly wages and salaries.
Answers: 3
Business, 23.06.2019 01:50
Mart's boutique has sales of $820,000 and costs of $540,000. interest expense is $36,000 and depreciation is $59,000. the tax rate is 21 percent. what is the net income? $146,150 221,200 105,000 139,050
Answers: 3
Business, 23.06.2019 08:20
According to the balanced budget multiplier, an increase in government spending of $10,000 that is financed by an increase of $10,000 in taxes will have what effect on the economy when mpc is 0.80?
Answers: 1
Business, 23.06.2019 09:00
It will gain you more knowledge, intensify your soft skills, grow your strong work ethics and grow your network and grow your network. what is it ?
Answers: 3
You know the right answer?
Palomar Battery Company expects to operate at 75% of full capacity during April. The total manufactu...
Questions
Mathematics, 12.03.2020 01:36
Biology, 12.03.2020 01:37
Computers and Technology, 12.03.2020 01:37
