Green Park Recreation is exploring a competitive bidding situation. The firm, which currently has no excess capacity, estimates the following costs for a project to be performed for the Morningside School District: $$\begin{array} { l r }
\text { Direct material } & \$ 220,000 \
\text { Direct labor } & 130,000 \
\text { Allocated variable overhead } & 91,000 \
\text { Allocated fixed cost } & 40,000
\end{array}$$ Which of the following cost figures would be used in determining a minimum price if Green Park decides to bid on the Morningside project?
A) $131,000.
B) $350,000.
C) $441,000.
D) $481,000.
E) None of the other answers are correct.

Question

Green Park Recreation is exploring a competitive bidding situation. The firm, which currently has no excess capacity, estimates the following costs for a project to be performed for the Morningside School District: $$\begin{array} { l r } 
\text { Direct material } & \$ 220,000 \
\text { Direct labor } & 130,000 \
\text { Allocated variable overhead } & 91,000 \
\text { Allocated fixed cost } & 40,000
\end{array}$$ Which of the following cost figures would be used in determining a minimum price if Green Park decides to bid on the Morningside project?
A) $131,000.
B) $350,000.
C) $441,000.
D) $481,000.
E) None of the other answers are correct.

Quizplus · Accepted Answer

The Answer of Green Park Recreation is exploring a competitive bidding situation. The firm, which currently has no excess capacity, estimates the following costs for a project to be performed for the Morningside School District: $$\begin{array} { l r } 
\text { Direct material } & \$ 220,000 \
\text { Direct labor } & 130,000 \
\text { Allocated variable overhead } & 91,000 \
\text { Allocated fixed cost } & 40,000
\end{array}$$ Which of the following cost figures would be used in determining a minimum price if Green Park decides to bid on the Morningside project?
A) $131,000.
B) $350,000.
C) $441,000.
D) $481,000.
E) None of the other answers are correct.

Green Park Recreation Is Exploring a Competitive Bidding Situation Which of the Following Cost Figures Would Be Used in Firm