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OverLord2011 [107]
3 years ago
14

Harlen Company is involved in a competitive bidding situation. The following costs are anticipated for a project to be bid with

the City of Crimson:
Direct material $340,000
Direct labor 610,000
Allocated variable overhead 420,000
Allocated fixed cost 110,000
Which of the following cost figures should be used in setting a minimum bid price if Harlen has excess capacity?
A. $530,000.
B. $950,000.
C. $1,370,000.
D. $1,480,000.
E. None of the answers is correct.
Business
1 answer:
erica [24]3 years ago
4 0

Answer:

C. $1,370,000

Explanation:

Calculation to determine the cost figures that should be used in setting a minimum bid price if Harlen has excess capacity

Direct material $340,000

Direct labor $610,000

Allocated variable overhead $420,000

Minimum bid price $1,370,000

($340,000+$610,000+$420,000)

Therefore the cost figures that should be used in setting a minimum bid price if Harlen has excess capacity is $1,370,000

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Note: The full question is attached as picture below

                               (a)                   (b)                   (c)  

                                In                                      Larger  

                            Balance      Difference       column

1.                               No               $725             Debit  

2.                             Yes                 NA                NA  

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Lang Warehouses borrowed $196,401 from a bank and signed a note requiring 7 annual payments of $33,942 beginning one year from t
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Answer:

5%

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The interest rate implicit in the agreement can be determined by finding the internal rate of return.

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IRR = 5%

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.  

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