Business, 27.04.2021 16:00 zay179

Forever Ready Company expects to operate at 88% of productive capacity during May. The total manufacturing costs for May for the production of 29,040 batteries are budgeted as follows: Direct materials $225,100
Direct labor 82,800
Variable factory overhead 23,156
Fixed factory overhead 46,000
Total manufacturing costs $377,056

The company has an opportunity to submit a bid for 2,000 batteries to be delivered by May 31 to a government agency. If the contract is obtained, it is anticipated that the additional activity will not interfere with normal production during May or increase the selling or administrative expenses.

Required:
What is the unit cost which Forever Ready Company should not go in bidding on the government contract? Round your answer to two decimal places.

Answers: 1

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Forever Ready Company expects to operate at 88% of productive capacity during May. The total manufac...

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