Jackson Window and Supplies is bidding on replacing windows in a large condominiumcomplex. The company has gatheredthe following information:Estimated wages of 8 window installers for the projectEstimated labor hours for the entire companyEstimated cost of fringesDesired profit margin per direct labor hourExpected number of units to be produced and sold$14,04016,00015% of labor$12800The cost of the new windows and other materials is $9,400. The average hourly wage peremployee is $18 per hour with 780 hours estimated for the project. The overhead rate is20% of total labor cost (including fringes.) The material loading charge is 10%. How much ithe bid price if time-and-material pricing is used?a. $38,135b. $28,735c. $39,075d. Some other answer.The answer is c. $39,075. You need to solve the problem providing the work that gives thecorrect answer.

Consider the following costs to calculate the bid price using time-and-material pricing 1. Labor…

Answered: Jackson Window and Supplies is bidding…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 4EA: Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on...

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Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house one time) takes a team of three house cleaners about 1.5 hours. On average, HHH completes about 15,000 cleanings per year. The following total costs are associated with the total cleanings: Next year, HHH expects to purchase 25,600 of direct materials. Projected beginning and ending inventories for direct materials are as follows: There is no work-in-process inventory; in other words, a cleaning is started and completed on the same day. Required: 1. Prepare a statement of services produced in good form. 2. What if HHH planned to purchase 30,000 of direct materials? Assume there would be no change in beginning and ending inventories of materials. Explain which line items on the statement of services produced would be affected and how (increase or decrease).
Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house one time) takes a team of three house cleaners about 1.5 hours. On average, HHH completes about 15,000 cleanings per year. The following total costs are associated with the total cleanings: Next year, HHH expects to purchase 25,600 of direct materials. Projected beginning and ending inventories for direct materials are as follows: There is no work-in-process inventory and no finished goods inventory; in other words, a cleaning is started and completed on the same day. HHH expects to sell 15,000 cleanings at a price of 45 each next year. Total selling expense is projected at 22,000, and total administrative expense is projected at 53,000. Required: 1. Prepare an income statement in good form. 2. What if Jean and Tom increased the price to 50 per cleaning and no other information was affected? Explain which line items in the income statement would be affected and how.
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A contractor is assembling a bid for a lump-sum building project. The summation of all task costs is $15,000,000. Annual company revenue is $400 million, and annual home office costs are $25 million. Total job office overhead is estimated to be $3 million and desired profit is 11%. Include O&P, what lump-sum price should the contractor bid?
Diamond Visual Entertainment Inc. recently began production of a new product, flat panel displays, which required the investment of $1,500,000 in assets. The costs of producing and selling 5,000 units of flat panel displays are estimated as follows: Variable Costs: Variable Cost Amount: Fixed Costs: Fixed Cost Amount: Direct materials $120 Factory overhead $240,000 Direct labor 35 Selling and admin expenses 150,000 Variable overhead 52 Total Fixed costs 390,000 Selling and admin expenses 38 Total variable costs 245 Diamond Visual Entertainment Inc. is currently considering establishing a selling price for flat panel displays. The president of Diamond Visual Entertainment has decided to use the cost-plus approach to product pricing and has indicated that the displays must earn a 17% return on invested assets. A. Assuming that the variable cost method is used,…
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