Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. in order to bid more effectively on potential cont

In order to bid more effectively on potential contract work, Elizabeth, the owner of Cheyenne,...

60.1K

Verified Solution

Question

Accounting

image
In order to bid more effectively on potential contract work, Elizabeth, the owner of Cheyenne, uses normal costing within her company's job costing system. She needs to provide potential customers with an estimate of the final cost of the project before they'l commit to working with Cheyenne. On her most recent job, Elizabeth bid $70,000 to custom-design a kitchen/living room space for her client (including all DM, DL, and MOH costs plus a mark-up of $23,800 ). Her total cost estimate includes MOH costs of $11,000, using a budgeted MOH rate of $0.50/DL dollar. If the scope of the project should change, for example, if the client later decides to upgrade the appliances, the client will have to absorb the remaining cost. (a) If Elizabeth's original total cost estimate specified a breakdown between DM, DL, and MOH, how much DL and DM cost are included in the original total cost estimate

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students