Joni's Kitty Supplies applies manufacturing overhead costs to products at a
budgeted rate of $60 per direct manufacturing labor-hour. A retail outlet has
requested a bid on a special order of the Toy Mouse product. Estimates for this
order include: Direct materials $40,000; 500 direct manufacturing labor-hours at
$20 per hour; and a 20% markup rate on total manufacturing costs.
What is the estimated manufacturing overheads for this order?
What is the estimated total product cost for this order?
What is the bid price for this order?
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