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Calculate the amount of the final price adjustment

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Calculate the amount of the final price adjustment because of defective pricing based on the following:

Contractor unintentionally overpriced their material costs by $75,000 and under-priced their direct manufacturing labor costs by $50,000. Overhead rates used to price the original contract are given below:

Material OH 15%

Engineering OH 75%

Manufacturing OH 124%

Lawn Maintenance OH 1.5%

G&A 24%

Reference no: EM132687362

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