Increase = $91,280
Working
financial advantage (disadvantage) of accepting the special order | |
Additional Revenue from offer (8400 x $45.3) | $ 380,520.00 |
Less: Total Additional cost due to acceptance of offer | $ 289,240.00 |
Financial Advantage | $ 91,280.00 |
.
Calculation of Additional Cost of Order | ||
Per Unit | Total | |
Direct material | $ 16.10 | $ 135,240.00 |
Direct labor | $ 5.40 | $ 45,360.00 |
Variable manufacturing overheads | $ 2.60 | $ 21,840.00 |
Additional Variable cost | $ 5.00 | $ 42,000.00 |
Additional cost for special tool | $ 44,800.00 | |
Total Additional cost due to acceptance of order | $ 29.10 | $ 289,240.00 |
TB Problem Qu. 12-189 Wehrs Corporation has received a request for a special ... Wehrs Corporation...
TB Problem Qu. 12-189 Wehrs Corporation has received a request for a special ... Wehrs Corporation has received a request for a special order of 9,000 units of product K19 for $46.50 each. The normal selling price of this product is $51.60 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product K19 is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost...
Wehrs Corporation has received a request for a special order of 9,800 units of product K19 for $47.30 each. The normal selling price of this product is $52.40 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product K19 is computed as follows: Direct materials $ 18.10 Direct labor 7.40 Variable manufacturing overhead 4.60 Fixed manufacturing overhead 7.50 Unit product cost $ 37.60 Direct labor is a variable cost. The...
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Wehrs Corporation has received a request for a special order of 9,800 units of product K19 for $47.30 each. The normal selling price of this product is $52.40 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product K19 is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost $18.10 7.40 4.60 7.50 $37.60 Direct labor is a variable cost. The special order...
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Wehrs Corporation has received a request for a special order of 9,100 units of product K19 for $46.00 each. The normal selling price of this product is $51.10 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product K19 is computed as follows: Direct materials $ 16.80 Direct labor 6.10 Variable manufacturing overhead 3.30 Fixed manufacturing overhead 6.20 Unit product cost $ 32.40 Direct labor is a variable cost. The...
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