Smith Accounting Services is considering a special order that it 1 answer below »

Smith Accounting Services is considering a special order that it received from one of its corporate clients. The special order calls for Smith to prepare the individual tax returns of the corporation’s four-largest shareholders. The company has idle capacity that could be used to complete the special order. The following data have been gathered about the preparation of individual tax returns:
Materials cost per page…………………………..$1
Average hourly labor rate……………………….$60
Standard hours per return………………………. 4
Variable overhead cost per page………………$0.50
Fixed overhead cost per page…………………$0.50
Smith Accounting Services would be satisfied with a $40 gross profit per return. Computer the minimum bid price for the entire order.

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *