SOLUTION
1.
Per unit ($) | Total 29 bracelets ($) | |
Incremental revenue | 364 | 10,556 |
Incremental costs: | ||
Variable costs: | ||
Direct material | 145 | 4,205 |
Direct labor | 80 | 2,320 |
Variable manufacturing overhead | 10 | 290 |
Special filigree | 9 | 261 |
Total variable cost | 244 | 7,076 |
Fixed costs: | ||
Purchase of special tool | 456 | |
Total incremental costs | 7,532 | |
Incremental net operating income | 3,024 |
2. Yes, the special order should be accepted.
Imperial Jewelers manufactures and sells a gold bracelet for $404.00. The company's accounting system says that...
Imperial Jewelers manufactures and sells a gold bracelet for $404.00. The company's accounting system says that the unit product cost for this bracelet is $273.00 as shown below: $146 88 Direct materials Direct labor Manufacturing overhead Unit product cost $ 273 The members of a wedding party have approached Imperial Jewelers about buying 13 of these gold bracelets for the discounted price of $364.00 each. The members of the wedding party would like special filigree applied to the bracelets that...
Imperial Jewelers manufactures and sells a gold bracelet for $404.00. The company's accounting system says that the unit product cost for this bracelet is $265.00 as shown below: $147 Direct materials Direct labor Manufacturing overhead Unit product cost The members of a wedding party have approached Imperial Jewelers about buying 21 of these gold bracelets for the discounted price of $364.00 each. The members of the wedding party would like special filigree applied to the bracelets that would require Imperial...
Imperial Jewelers manufactures and sells a gold bracelet for $404.00. The company's accounting system says that the unit product cost for this bracelet is $272.00 as shown below: $149 Direct materials Direct labor Manufacturing overhead Unit product cost $272 The members of a wedding party have approached Imperial Jewelers about buying 20 of these gold bracelets for the discounted price of $364.00 each. The members of the wedding party would like special filigree applied to the bracelets that would require...
Imperial Jewelers manufactures and sells a gold bracelet for $404.00. The company's accounting system says that the unit product cost for this bracelet is $257.00 as shown below: $ 140 Direct materials Direct labor Manufacturing overhead Unit product cost 3e The members of a wedding party have approached Imperial Jewelers about buying 14 of these gold bracelets for the discounted price of $364.00 each. The members of the wedding party would like special filigree applied to the bracelets that would...
Imperial Jewelers manufactures and sells a gold bracelet for $404.00. The company's accounting system says that the unit product cost for this bracelet is $268.00 as shown below: $146 87 Direct materials Direct labor Manufacturing overhead Unit product cost 35 $ 268 The members of a wedding party have approached Imperial Jewelers about buying 26 of these gold bracelets for the discounted price of $364.00 each. The members of the wedding party would like special filigree applied to the bracelets...
Imperial Jewelers manufactures and sells a gold bracelet for $404.00. The company's accounting system says that the unit product cost for this bracelet is $270.00 as shown below: $ 145 Direct materials Direct labor Manufacturing overhead Unit product cost $ 270 The members of a wedding party have approached Imperial Jewelers about buying 16 of these gold bracelets for the discounted price of $364.00 each. The members of the wedding party would like special filigree applied to the bracelets that...
Imperial Jewelers manufactures and sells a gold bracelet for $404.00. The company’s accounting system says that the unit product cost for this bracelet is $268.00 as shown below: Direct materials $ 142 Direct labor 87 Manufacturing overhead 39 Unit product cost $ 268 The members of a wedding party have approached Imperial Jewelers about buying 21 of these gold bracelets for the discounted price of $364.00 each. The members of the wedding party would like special filigree applied to the...
Imperial Jewelers manufactures and sells a gold bracelet for $404.00. The company’s accounting system says that the unit product cost for this bracelet is $259.00 as shown below: Direct materials $ 140 Direct labor 87 Manufacturing overhead 32 Unit product cost $ 259 The members of a wedding party have approached Imperial Jewelers about buying 11 of these gold bracelets for the discounted price of $364.00 each. The members of the wedding party would like special filigree applied to the...
Imperial Jewelers manufactures and sells a gold bracelet for $410.00. The company's accounting system says that the unit product cost for this bracelet is $258.00 as shown below: $145 Direct materials Direct labor Manufacturing overhead Unit product cost 30 $258 The members of a wedding party have approached Imperial Jewelers about buying 24 of these gold bracelets for the discounted price of $370.00 each. The members of the wedding party would like special filigree applied to the bracelets that would...
Imperial Jewelers manufactures and sells a gold bracelet for $410.00. The company's accounting system says that the unit product cost for this bracelet is $263.00 as shown below: $147 Direct materials Direct labor Manufacturing overhead Unit product cost The members of a wedding party have approached Imperial Jewelers about buying 26 of these gold bracelets for the discounted price of $370.00 each. The members of the wedding party would like special filigree applied to the bracelets that would require Imperial...