I am so confused with this project, please help and show work for each step so I can understand. This project is a huge part of my grade. Thank you.
Lumber makes hand-crafted furniture. The company has been asked by Gelato for a quote on 100 table and chair sets.
The company’s records show the following Materials needed for the full order:
Wood – 15 units at $9.25 per unit
Padding – 20 yards at $5.05 per yard
Fabric – 35 yards at $27.25 per yard
The company’s records show the following Direct Labor needed for the full order:
Curt Cutter: 7 hours at $21.55 per hour
Pachia Padder: 5 hours at $19.75 per hour
Frank Fabric: 25 hours at $28.00 per hour
The company allocates Manufacturing Overhead based on direct labor hours. The following are the company-wide estimates for this year:
Overhead Total Costs: $325,000
Total Hours of Direct Labor: 7,000
Additional Information: Mark-up Rate: 6% Tax Rate: 5.5%
Part 1: The Bid
1. Create the following internal documentation for Lumber
a. Compute Lumber’s predetermined manufacturing overhead rate
b. Compute the total cost for this bid
2. Submit a professional bid to Gelato’s CEO
Part 2: Budget to Actual Analysis
1. Provide a Budget to Actual report to the CEO of Lumber
a. Memo with variation analysis explanations and proposals for improvements
b. Detailed variation analysis spreadsheet detailing the data behind your proposals
