Find the fixed overhead cost

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Reference no: EM131843739

Jobs, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan a home for fires and gas leaks and then transmit this information to a smartphone. The cost structure to manufacture 20,600 Tri-Robos is as follows.

	Cost
Direct materials ($52 per robot)	$1,071,200
Direct labor ($40 per robot)	824,000
Variable overhead ($7 per robot)	144,200
Allocated fixed overhead ($29 per robot)	600,000
Total	$2,639,400

Jobs is approached by Tienh Inc., which offers to make Tri-Robo for $118 per unit or $2,430,800.

Following are independent assumptions.

Assume that $405,000 of the fixed overhead cost can be avoided. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Reference no: EM131843739

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