Temp Housing Corp, manufactures modular homes for commercial customers and gover
ID: 2330488 • Letter: T
Question
Temp Housing Corp, manufactures modular homes for commercial customers and government agencies and has been providing emergency housing units to FEMA FEMA has requested a bid for 180 emergency housing units to be sent out west for the wildfire victims. Your you to prepare the bid. While researching the bid, you found a invoice sent to FEMA for 200 units they purchased for hurricane victims. You also have the standard cost sheet for the model they are purchasing manager asked Standard cost sheet: emergency housing: one bedroom model: Direct materials $ 9500 704 $3.50/direct labor 44 Direct labor 32 hours Total Cost $12.668 Retail markup on total cost 25% Retail price $15.835 INVOICE DATE: October 20, 2018 CUSTOMER: FEMA QUANTITY: 200 Emergency Housing Units SHIP TO: Sarasota, FL Direct materials s 2090,000 Direct labor 164,000 Manufacturing Overhead 575400 Total Cost $ 2829.400 Govenment contract markup on total cost 20% Total due 3395,760Explanation / Answer
Solution:
Given data is,
FEMA has requested a bid for 180 emergency housing units to be sent out west for the wildfire victims.
While researching the bid, you found a invoice sent to FEMA FOR 200 units they purchased for hurricane victims.
And
Standard cost sheet for the model they are purchasing.
Direct materials
$ 9,500
Direct labor
32 hours
704
Manufacturing Overhead
$3.50/direct labor hour
2,464
Total Cost
$12,668
Retail markup on total cost
25%
Retail price
$15,835
INVOICE
DATE: September 15, 2014
CUSTOMER: FEMA
QUANTITY: 200 Emergency Housing Units
SHIP TO: Sarasota, FL
Direct materials
$ 2,090,000
Direct labor
164,000
Manufacturing Overhead
575,400
Total Cost
$ 2,829,800
Government contract markup on total cost
20%
Total due
$ 3,395,760
Now we need to find the values for given requirements, the caluclations are explained below.
Answer for (1). Bid based on standard cost sheet (cost + 20% Government contract):
Answer for (2). Total bid basing on 2018 invoice assuming a cost plus 20%
Answer for (3).
There is a contrast between the two cost. The cost ascertained utilizing the receipt is more noteworthy than the cost computed according to the standard cost. The reason could be that, administration contract have just 20% edge, contrasted with the retail cost edge of 25%, in this way, the expenses have been expanded in the receipt unused on oct 20, 2018 to gain better edges.
Answer for (4).
We should show the offer according to the standard cost estimations since it would morally be wrong to expand the costs to feign the administration.
Direct materials
$ 9,500
Direct labor
32 hours
704
Manufacturing Overhead
$3.50/direct labor hour
2,464
Total Cost
$12,668
Retail markup on total cost
25%
Retail price
$15,835
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.