26 Dec Smith Accounting Services is considering a special
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..$1Average hourly labor rate.$60Standard hours per return. 4Variable overhead cost per page$0.50Fixed overhead cost per page$0.50Smith Accounting Services would be satisfied with a $40 gross profit per return. Computer the minimum bid price for the entire order.
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