Wisconsin Electronics has received an order for? 1,000 speciallydesigned? TV/VCR combinations. The following standards...

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Wisconsin Electronics has received an order for? 1,000 speciallydesigned? TV/VCR combinations. The following standards werecompiled for this? order: Direct? materials: Part? #123 ?$25 per?TV/VCR Part? #456 ?$50 per? TV/VCR Direct? labor: 2.0 hours per?TV/VCR at? $15 per hour Manufacturing? overhead: ?$40 per directlabor hour Assume the company adds a? 10% markup to arrive at aselling price. The bid price for this order? totals: A. ?$203,500.B. ?$115,500. C. ?$185,000. D. ?$80,000.

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All Workings form part of the answer

-Working and Answer

Costs	Workings	Amount
Direct Material:
Part #123	[1000 TV/VCRs x $ 25]	$ 25,000.00
Part #456	[1000 TV/VCRs x $ 50]	$ 50,000.00
Direct Labor	]2 hours x 1000 TV/VCR x $ 15 per hour]	$ 30,000.00
Manufacturing Overhead	[$ 40 x 2 hours x 1000 TV/VCR]	$ 80,000.00
Total Cost assigned		$ 185,000.00
Mark Up of 10%		$ 18,500.00
Bid Price for Order		$ 203,500.00
CORRECT ANSWER		Option 'A': $ 203,500

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In: AccountingWisconsin Electronics has received an order for? 1,000 speciallydesigned? TV/VCR combinations. The following standards were...Wisconsin Electronics has received an order for? 1,000 speciallydesigned? TV/VCR combinations. The following standards werecompiled for this? order: Direct? materials: Part? #123 ?$25 per?TV/VCR Part? #456 ?$50 per? TV/VCR Direct? labor: 2.0 hours per?TV/VCR at? $15 per hour Manufacturing? overhead: ?$40 per directlabor hour Assume the company adds a? 10% markup to arrive at aselling price. The bid price for this order? totals: A. ?$203,500.B. ?$115,500. C. ?$185,000. D. ?$80,000.