Egger Manufacturing (Company) is a small bookbinder using machine-hours (mh) as the single indirect-cost rate to allocate manufacturing overhead costs to the various jobs contracted during the year. The following estimates are provided for the coming year for the Company and for the Sweeny Book Publisher.
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Required:
a. For Egger Manufacturing, what is the annual manufacturing overhead cost-allocation rate?
b. What amount of manufacturing overhead costs will be allocated to this job?
c. What is the bid price for the Sweeny job if the company uses a 40% mark-up of total manufacturing costs?